Skip to content Skip to navigation

Danger looms over existence of century old oil refinery

By Daya Nath Singh |


Established in 1901 Digboi oil refinery is not only India’s, but Asia’s first oil refinery, which is now losing its glory due to present marketing policy and mismanagement. According to the workers of the refinery the journey of oil industry in India began from Digboi in Assam. After long sixty years, Indian Oil Corporation Ltd (IOCL) came into existence in 1962, with its first refinery at Guwahati. Under the IOCL and even prior to that there was no effort by the management to increase the production capacity of this refinery. Whereas, for the survival of refinery its capacity should have been increased to 9 million MT, it came down to 0.65 million tons. In the meantime, the IOCL increased the capacity of outside refineries, but for Digboi, it maintained the plea of scarcity of crude oil and the market.


Mineral Oil Workers Union (MOWU) representing the workers of Digboi refinery have now demanded to establish a separate Assam Oil Marketing Division for the Northeastern region, with its Head Quarters at Guwahati. It has argued, when IOCL could supplying crude oil from Mumbai seashore to the Mathura refinery in Uttar Pradesh and from Haldia sea port to Barauni refinery in Bihar, why the Assam Oil Company could not get fair treatment from the government. Recently, IOCL has prepared a project report to increase the production of Numaligarh refinery from 3 million metric ton to 8 million metric ton, but it has shown its inability to increase the capacity of century old Digboi refinery on various grounds. The Union has alleged that the Centre and state governments, IOCL and AOC high officials are playing discriminatory role in respect of Digboi refinery.


It may be mentioned in this context that Assam Oil Marketing Division was brought under the Indian Oil Corporation Ltd, in the year 2008 and in the name of North East Integrated State Office (NEISO), an office was opened at Guwahati. This office is controlled by Kolkata based marketing division’s Eastern Division Office. The workers of Digboi were given to understand that there would be no change in the Assam Oil Division (AOD) marketing and by cutting down the expenses the profit would be increased. This assurance did not carry any meaning and the AOD marketing has been lost, the union alleged. Losses have increased due to reduced production and Assam Oil Company (AOC) and its historic sign of Rhino have now been removed. A number of workers and officials from IOC have occupied the positions in AOD offices.


Further, due to Eastern Regional Divisional office operating from Kolkata all the functions related to appointments, contracts, printing and miscellaneous items’ purchases are done at Kolkata. As a result the people of the Northeastern region are deprived of these opportunities. Even now, Assam Oils’ LPG plant, distributional terminal, retail outlets are more than the IOCL Marketing Division. The office establishment of AOD is also better than the IOCL Marketing Division.


It is vital to remember that Assam Oil Company was nationalized in 1981 and it was recognized as a division of Indian Oil Corporation (IOCL), because it has its refinery, pipelines as well as marketing network. At this stage, if it loses marketing network, there would be no Assam Oil Division, workers fear. The refinery would have to depend on production of .65 million MT oil refining capacity and incurring heavy losses which would let the factory die. There would be no Digboi without Assam Oil. Besides, not a single industry came up in Digboi during last one century, except the Assam Oil refinery. Till now there is no downstream industry and day by day the number of workers in the refinery is going down. Since the year 2006 more than five hundred workers have retired from the services and at present the number of workers stands at 1700 only. The doors are closed for new appointments and very shortly the number of workers is likely to go down to 1000. Under the circumstances, the Mineral Oil Workers Union has demanded that Indian Oil Corporation should constitute a separate division for North Eastern Region with its headquarters at Guwahati to do entire marketing works. The Assam Oil Division is confident of doing successful business in the Northeastern region. The Union has also demanded that till the constitution of a new division AOD should be given the responsibility of marketing in the region.




  • 14213 reads

Add new comment

Other Contents by Author

Assam sericulture heading for a boost

Emergence of a composite silk unit, namely, Fabric Plus is a boon to the silk industry in Assam. Union minister for textiles, Dayanidhi Maran, on August 19 last, inaugurated a composite silk unit at Chaygaon industrial growth centre, near Guwahati. The project is estimated to cost around Rs.5.50 crore, including infrastructure for spun silk mill, machineries, working capital and looms etc. The promoters, Fabric Plus, have contributed an amount of Rs.22.60 lakh. The Central and State governments have provided a subsidy of Rs.155.30 lakh and Rs.48.10 lakh respectively, for installation of machineries and equipments etc. The total output from the mill is likely to support around 4000 Eri...

Do our traders lack honesty?

Trade is the ‘spinal cord’ of a country’s economy and the traders are its protectors. At a time our traders were among the most trusted nationals, who sacrificed all their earnings and belongings, when the country needed it. Those days have gone in the pages of history now. The situation is changed and the national feelings in the trading community have gradually diminished. Honesty, the essence of the trade has lost its value and it is no more the ‘best policy’ in the trade. The majority of traders feel that they could not survive if they try to be honest. They have invented the technique of more earnings with less investments and spurious products. They try...

Religious places require better environment

In the Indian life style religion has got most important place and everybody in this democratic country is free to worship one’s Almighty in one’s own way. But the religious people are divided among themselves on the pattern of worship, be they Christians, Muslims or Hindus. Many factions have emerged out in the Christianity and Islam too, but maximum division is visible in Hinduism. Though the religious teachings are about the purity of mind and hearts, in practice the followers react otherwise. Same is the case with the institutions running the religious Trusts throughout the country. In India there are thousands of religious places for Hindus, both big and small. Among them...

North Cachar Hills crying for peace

Recent violence in North Cachar Hills district of Assam has attracted entire nation to put efforts to bring peace in this ‘ever peaceful’ autonomous council. A large number of fact finding committees so far have visited the places where violence occurred with hundreds of people killed and houses burnt. Recently a five member fact finding committee of Justice on Trial visited the violence-hit N C Hills district and contacted a number of villagers and tribal groups of Dimasas, Zemes, Karbis, Kukis, Hmars and other indigenous tribes. The people are sincerely crying for peace in the areas. Women of all tribal and non-tribal indigenous groups also expressed the plight of refugees...

Nation forgets Gandhi’s wishes

Mahatma Gandhi had expressed his clear view on the importance of ‘healthy work culture’ in the Harijan newspaper of 15th October, 1938, emphasizing on hard work by the people of the country, for attaining the goal of freedom. He dared to declare as ‘declaring my birthday as a holiday should be treated as a cognizable offence’. This was a clear indication that the “Great Soul’ was confident of the might of his people, which later on succeeded in bringing freedom to the country. His experiments on Swadeshi movement brought good results. But the present situation has completely changed the whole thing and his dreams are shattered. Unfortunately, with his...

NE Election Watch monitoring Urban Local body polls

The North East Election watch, a part of National Election Watch (NEW) has been monitoring the candidates for 2009 Urban Local Body elections to be held on July 31 next, covering 70 number of town committees and municipal boards of Assam. In these Urban Local body Elections, total 673 wards of the states will face elections where 29 constituencies are reserved for SC, 34 for SC women, 5 for ST, 5 for ST women and 212 wards for general women. The Supreme Court of India has declared through its verdict dated March 13, 2003 that “It is essential by law to provide that a candidate seeking election shall furnish the details of all his assets (movable and immoveable) possessed by him or...

Aviation industry in India growing faster

Recent opening of the College of Aeronautical Engineering in Guwahati, has been welcomed by the people of the state, which has brought the hope to bring the country at par with others, providing better educational facilities and encouraging the youths to build up their career in aviation. For them the sky is not at distance. There is no dearth of meritorious young men in this part of the country. The lack of such facilities has so far been the main obstacle before them to decide a suitable career. Earlier, air travel was a privilege only a few could afford, but with the commencement of operations by the low cost careers, now large number of people can afford air travel. At present Indian...

Fiscal closing is Assam’s beginning

March month is the closing of fiscal, but the Assam government plans to begin the implementation of developmental schemes during this very month alone. An example of such action has been found in the disastrous flood and erosion problems in Matmara recently. Giving brief picture of the recent flood problems affecting Matmara, Dhakuakhana and Majuli areas of the state to media persons recently, the All Assam Water Resources Contractors’ Association (AAWRCA), alleged that ignoring the suggestions by the organization, the government had gone out of the way to implement the schemes of flood control and erosion, resulting in such calamities. The organization’s president, Muhi...

India’s ‘Look East Policy’ concern for Burmese

India the largest democracy in the world has always been maintaining good relationship with its neighbors like Bhutan, Nepal, Pakistan, Bangladesh, Sri Lanka and Burma. The efforts are continue for a peaceful co-existence with all its neighboring countries. At a time when this country pleads for democracy in other countries and has welcomed the democratically elected governments in Nepal, Pakistan and Bangladesh, its attitude towards Burma (Now Myanmar) seems a bit different. This shift in its policy took place during the year 1990, when India launched its “Look East Policy” and began to support the military junta in Burma. Since India has embarked upon building a broad based...

Small scale industries seek Assam government’s sympathy

The recent slow down in the global economy has seriously affected the business of micro and small scale industries in Assam. This has coupled with existing road blocks and pushed back this most employment generation sector into dire straits. While the global recession can not be tackled easily, the many existing impediments can easily be removed by the state government intervention,’ said B L Agarwal and J N Baruah, the president and general secretary respectively of the All Assam Small Scale Industries Association. They were addressing the media persons in Guwahati, recently. Agarwal said that the existing VAT laws in Assam are heavily loaded against the local industries. If...