Skip to content Skip to navigation

Danger looms over existence of century old oil refinery


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.




Add new comment

Random Stories

Stall booking open for Rongali Mela 2020

1 Mar 2020 - 9:50am | AT News
Here comes the spring with beauty and bounty in nook and corner of Assam. Gurgling steams, blooming buds and chirping birds keep reviving the minds and spirits of millions of the people irrespective...

Merger of regional forces seemed to be taken U-turn

8 May 2008 - 3:47pm | Nagendra Sarma
The May 5, which was called to be a red letter day in the history of regional politics in the state of Assam when almost all the leaders after having a meet with eleven member committee and agreed to...

Soft Skills and its significance for the students of North-east India.

19 Nov 2011 - 6:10pm | Arindam Garg
Soft skills is a sociological term relating to a person's cluster of personality traits, social graces, communication, language, personal habits, friendliness, and optimism that characterize...

Magh Bihu Celebrated in Gurgaon

15 Jan 2009 - 8:31pm | editor
Uruka, on the occasion of Magh Bihu was celebrated by the People of Assam as well as Well-wishers of Assam, currently residing in the millenium city of Gurgaon...

Other Contents by Author

It was really a mockery of foundation stone laying ceremony by the Chief Minister of Assam one day ahead of announcement of Lok Sabha polls in the country by the Election Commission of India on 5th March 2014. As soon as on March 4, the news spread that the election dates would be announced on 5th March, Mr. S. Vishwanathan, Commissioner, Guwahati Municipal Corporation (GMC), Mayor, Abir Patra of GMC along with other GMC officials approached the office bearers of the Ulubari Bazar Committee with information that the foundation stone laying ceremony would be done by the Chief Minister Tarun Gogoi, the following day i.e. on 5th March at 11 a.m. They ordered dismantling of about two dozens of...
The Society for Socio-Economic-Development in the Region (SSEDR), a city based NGO, has raised a question mark on the initiative taken by the Assam Government with Pollution Control Board (PCB), Assam for conservation of Bharalu and Kalang rivers. It said that the State holder consultation workshop held on December 18, 2013, was mainly attended by the officers of various level of State and Central governments and representatives of Louis Berger Group (LBG) and DHI (India). The draft minutes of meeting has shown very unsatisfactory presence of non-biased technical expert and public representatives. This has raised a question regarding the sincerity and transparency of the whole process.The...
Maharshi Dayanand Saraswati established first ever Arya Samaj Mandir in Mumbai in the year 1875. Arya Samaj Guwahati chapter is one among such institutions spread all over India in 1932-35, when two Vedic scholars, Late Parmeswar Kakati and Late Robindra Nobis, first attempted to promote Vedic philosophy among the people of Northeast region. Finally, in 1964-65, the Guwahati Arya Samaj was established at Dr B Baruah Road, with active participation of various persons of the society like Late Sushil Das, Late RR Taneja, Late NR Taneja, Late Dr Narain Das, Late Om Prakash Anand, Shri B L Saboo, HR Arya, SC Arya and others took great efforts to build and help in growth of this institution....
With an idea to get rapid development of the Northeastern region, the Union government constituted a separate directorate, namely, the Directorate of North Eastern Region (DoNER), which has now turned to ‘do nothing in entire region’. This can be judged by the activities going on in the two major paper mills in the state of Assam, which are facing a threat of closure at any time. These paper mills, the units of Hindustan Paper Corporation Ltd, the Nagaon Paper Mills, Jagiroad in Morigaon district and the Cachar Paper Mill, in Panchgram of Barak valley, are suffering from acute shortage of raw materials for several years. The production in both mills have been badly affected and workers have...
Industrial development in India has ever been dependent on the political will of leadership since independence. It was because of the fact that no ‘fair policy’ could be framed by the Union Government for ‘equal development’ of all the regions of the country simultaneously. That is why some of the areas remained completely neglected and others developed beyond limit. Besides the metropolis and a few industrial cities, where opportunities were ample for industrial growth, there have been vast disparity in the growth of industries. The industrialization of a particular area depends fully on the degree of political influence in its favor.A few industries in the country have been setup on the...
Emergency imposed by former prime minister,  Indira Gandhi in the year 1975, was no doubt a bad thing for democracy, but in no way it was harmful to make the nation disciplined. That is the reason even some of her staunch critics had appreciated the steps taken by her at that crucial juncture.Democracy is for the disciplined people and unless the people are disciplined, the democracy has no meaning. A wrong notion is prevailing in our country about democracy now-a-days. The simple interpretation of democracy i.e. equal rights in society, is taken as freedom of speech, freedom of work, freedom to abuse or commit nuisance, freedom to live as per one’s life-style. It is because of this...
The Govt of Assam along with GVK EMRI launched 102 National Ambulance Service (NAS) on September1,2013 by Union health  and family welfare minister, Ghulam Nabi Azad in presence of Assam Chief Minister, Tarun Gogoi and state health and family welfare minister, Himanta Biswa Sarma and distinguished guests from state government; NRHM and GVK EMRI, Assam. It has now completed 120 days of operation, according to a press release issued by the organization. 102 NAS is the first of its kind in the country to serve Inter Facility Transfer (IFT). The service is for referred patient from a lower hospital to higher hospital. NAS in its 120 days journey has got a fleet strength of 279 vehicles out...
Snehalaya, a social service programme of Don Bosco Society for the care, protection and ultimate social reintegration of children in distress completed thirteen years of its existence. To mark the completion of thirteen years of relentless Services to children in need of special care and protection ‘Snehalaya Day’ was observed on January 4, 2014, at Don Bosco Higher Secondary School auditorium in Guwahati, where a number of dignitary participated in the function. Assam Chief Minister, Tarun Gogoi inaugurated the function.Snehalaya became operational on January 1, 2001. it was a millennium gift for the homeless and destitute children. On that day Fr Lukose Cheruvalel, the founder director of...
It was a turning point in my life at the end of year 1981, when I decided to go for a change after a successful 20 years of marketing experience. The reason behind the idea was the fatigue of the long travelling experiences, the growing age and stable family life.A small piece of advertisement in the English daily 'The Assam Tribune' on November 14, 1981, requiring sub editors for an upcoming English daily news paper attracted my attention and I did not make a second thought and applied for the same. Within a month the entire formalities were completed and out of 42 candidates, who appeared for the written test and interviews, six were selected for the job including myself.On 16th December...
India’s partition in the year 1947 on the basis of religion was a great mistake. It was a part of conspiracy planted by the British rulers, who succeeded in managing Muslim League leader, Mohammad Ali Jinnah to be rigid on his stand for a homeland and independent nation for the followers of Islam dividing India between the Muslim majority and other communities dominated areas. Despite all efforts made by Mahatma Gandhi to keep the country united, the result was not conducive due to sticky stand of both the Indian National Congress (INC) and the Muslim League (ML) leaders, which led to the danger of chaotic situation in the country. The situation could have resulted in long stay of the...