Reliance’s Jamnagar refinery: Company celebrates 25 years; Shah Rukh Khan, Amit Shah join in | Company Business News

Mukesh Ambani-led Reliance Industries’ refinery at Jamnagar crossed its 25-year milestone on Sunday, December 28. The company launched its first refinery at Jamnagar, Gujarat, on December 28, 1999.

According to the company, the Jamnagar refinery has contributed 25 per cent to India’s petroleum refining capacity.

“The first private sector refinery of India single-handedly added 25% to India’s total refining capacity and made India self-sufficient in transport fuels,” said Reliance. 

Reliance Industries shares closed 0.36 per cent higher at ₹1,220.95 after Friday’s trading session, compared to ₹1,216.60 at the previous market close.

The Beginning

According to Reliance, experts at the time of setting up the Jamnagar factory said that it would be impossible for an Indian company to set up a grassroots refinery in three years, but the company did it in 33 months.

The original land offer to Dhirubhai Ambani was in a barren and desolate region off Jamnagar, near a village called Motikhavdi. The company invested in the region without roads, electricity, or even sufficient drinking water. 

Now, looking at the huge Jamnagar refinery, there is a stark difference as the region is developed with large mango orchards and a mangrove belt that has become a haven for migratory birds outside the refinery.

The first refinery was set up on 5,000 acres of barren and desolate land in 1999, where Reliance spent more than $3.4 billion in capital costs. The refinery has a capacity of 27 million tonnes, as per company data.

The refinery was aimed at reducing India’s dependence on fuel imports. The company also set up a SEZ refinery in 2008, adding to Jamnagar’s refining power.

Jamnagar has yet to reach Reliance’s net zero commitment for 2035. 

Jamnagar Headwinds

Back in June 1998, Jamnagar was hit by a cyclone when the construction was in full swing. The damage, however limited, was caused to the temporary construction infrastructure.

Looking at the natural calamity aspect, Dhirubhai Ambani spent ₹1,500 crore more adding 10 per cent more to the project cost to make the refinery capable of handling a 9 Richter scale earthquake.

This came in handy when a 7.1 scale earthquake hit Bhuj less than 100 kilometres away from Jamnagar. 

Production Aspect

The Jamnagar refinery improved India’s exports of refined petroleum products and reduced the dependence on importing refined petroleum products into the nation.

Back in the financial year 1998-99, India’s total gasoline and diesel imports was at more than 10 million tonnes which dropped to zero once the refinery started its operations, as per the company data.

The Jamnagar refinery now produces 1.4 million barrels per day, processing 247 different grades of crude or feedstock from different places across the world, said Reliance.

In 2009, a second refinery at Jamnagar was commissioned with an average complexity of 12.7 on the Nelson Complexity Index. This move made Reliance Industries enter the top 10 private petroleum refining company list globally.

The evolution of the project over time has now brought the refinery from its earlier level of a 5,000-acre region to 25,000 acres in the city of Jamnagar, India. 

Bollywood actor Shah Rukh Khan and his wife arrived in Gujarat’s Jamnagar on Sunday, December 29, for the Reliance Jamnagar refinery celebrations, reported the news agency PTI. In addition to Khan, other people, such as Indian cricketer Ravindra Jadeja and Home Minister Amit Shah, also attended the celebrations.