Guwahati, Feb. 3: Numaligarh Refinery Limited (NRL) is exploring opportunities to export paraffin and semi-microcrystalline wax to the neighbouring countries in line with the Act East Policy of the Centre.
A senior NRL official said about 15,000 tonnes of wax had been sold at different destinations in the country since March last year. "It has been picked up by distributors and supplied all across the country. It has reached as far as Kochi," he said.
Prime Minister Narendra Modi will dedicate NRL's recently commissioned wax plant to the country on Friday at a public function in Dibrugarh.
The 50,000-tonne wax project, which was approved in June 2010, was commissioned in March last year at a cost of Rs 676 crore. It is the country's largest wax-producing unit, powered with indigenous technology developed by the Indian Institute of Petroleum Dehradun, Engineers India Limited and NRL itself.
A statement by the company said the plant is designed to produce superior quality paraffin and semi-microcrystalline wax by leveraging on the inherent properties of the wax-rich crude oil from the oil fields of Assam.
"No concrete plans have been finalised for exporting wax but Bangladesh, Myanmar, Nepal and Bhutan are the countries on the radar," an official said.
Currently, a major part of the country's annual demand for paraffin wax, along with the entire demand for microcrystalline wax, is being met through imports. NRL's wax plant will minimise the supply deficit in the domestic market substantially, thus reducing imports.
According to sources, NRL's project will help cut down wax imports by 50 per cent and save the country Rs 500 crore every year.
Microcrystalline wax is characterised by the fineness of its crystals in contrast to the large crystals of paraffin wax. It is generally darker, more viscous and denser and more elastic than paraffin wax and has a higher molecular weight and melting point. It is commonly used in cosmetic formulations.
The draft document of the Hydrocarbon Vision 2030 for Northeast India, prepared by CRISIL Risk and Infrastructure Solutions (CRIS) Limited has called for developing the region as a wax-production hub.
"Crude oil produced from the Northeast has high wax content; hence, the region has been developed as a major wax producing area," it says. Apart from NRL, Indian Oil Corporation's (IOC) Digboi refinery and Chennai Petroleum Corporation Ltd, a group company of IOC, also produce paraffin wax.
The Hydrocarbon Vision document adds that in view of such large availability of wax in the region, the Centre may formulate policies to incentivise industries that consume wax as a raw material to set up downstream units. Paraffin wax is used in tyre manufacturing, small-scale candle manufacturing units, pharmaceuticals and cosmetic industries.
The document says since candle manufacturing is not capital intensive and requires minimal resources, the Northeast can be developed as a candle-manufacturing hub for the country. Proximity with countries such as Bangladesh, Myanmar, Nepal and Bhutan would ensure a ready market for export for these small-scale industries.
NRL says the wax plant will also open up opportunities for ancillary industries to thrive while creating avenues for largescale employment.
