New Delhi: Privatisation-bound Bharat Petroleum Company Ltd (BPCL) on Monday stated it should exit Numaligarh refinery in Assam by promoting its whole stake to a consortium of Oil India Ltd and Engineers India Ltd for Rs 9,876 crore.
The sale of Numaligarh Refinery Ltd clears the best way for privatisation of India’s second-largest gas retailer.
In line with the Assam Peace Accord, the federal government had determined to maintain Numaligarh Refinery Ltd (NRL) within the public sector. As a part of this, BPCL was to promote its whole 61.65 per cent stake to state-owned corporations.
“The board of directors of BPCL at the meeting held on March 1, 2021, has approved the proposal for sale of entire equity shares of 445.35 crore held by BPCL in NRL to a consortium of OIL and EIL and to Government of Assam,” the agency stated in a submitting to the inventory exchanges.
Whole consideration can be Rs 9,875.96 crore.
The consortium of OIL and Engineers India Ltd is prone to purchase 49 per cent and the remainder 13.65 per cent can be offered to the Authorities of Assam.
NRL operates a 3 million tonnes every year oil refinery in Assam.
OIL presently holds 26 per cent fairness in NRL whereas the Authorities of Assam has round 12.35 per cent.
Division of Funding and Public Asset Administration Secretary Tuhin Kanta Pandey in a tweet stated, “privatisation process of BPCL moves ahead with BPCL Board deciding to exit from NRL at a consideration of Rs 9,875.96 cr for its 61.65% stake with transfer of control. OIL, EIL and Government of Assam will be picking up the stake”.
Put up NRL sale, BPCL can be left with three refineries at Mumbai, Kochi (Kerala) and Bina (Madhya Pradesh).
The federal government is promoting its whole 52.98 per cent stake in BPCL within the nation’s largest privatisation until date.
Vedanta Group and personal fairness corporations Apollo International and I Squared Capital’s Indian unit Suppose Fuel have put in an expression of curiosity for purchasing the federal government’s stake.
The sale of NRL is step one in direction of the disinvestment of BPCL.
The federal government has already indicated that it expects to finish BPCL privatisation by the primary half of the fiscal starting April (2021-22).
The sale is essential to reaching the Rs 1.75 lakh crore disinvestment goal set for 2021-22.
BPCL will give the client possession of round 15.33 per cent of India’s oil refining capability and 22 per cent of the gas advertising and marketing share.
NRL is trying to develop its refining capability from 3 million tonnes every year to 9 million tonnes a yr at an funding of Rs 22,594 crore. The undertaking is anticipated to be accomplished by 2024.
The enlargement additionally entails establishing of crude oil pipeline from Paradip in Odisha to Numaligarh and a product pipeline from Numaligarh to Siliguri in West Bengal.
Within the run-up to the privatisation, BPCL final month agreed to buyout Oman Oil Firm’s shares within the Bina refinery undertaking for about Rs 2,400 crore.
BPCL holds a 63.68 per cent stake in Bharat Oman Refineries Ltd (BORL), which constructed and operates a 7.8 million tonne oil refinery at Bina. It can purchase 36.62 per cent of the fairness share capital from OQ S.A.0.C. (previously often known as Oman Oil Firm S.A.0.C.) for Rs 2,399.26 crore.
BORL was integrated in February 1994 to construct a refinery at Bina. The unit initially may flip 6 million tonnes of crude oil yearly into gas, which was subsequently raised to 7.8 million tonnes.