Tuesday, June 28, 2022

BPCL to complete NRL disinvestment by March-end in FY21: Director Finance

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  • At the meeting held on February 8, the Board of Directors of BPCL has approved the sale purchase agreement for NRL disinvestment

  • NRL stake sale is happening at a rapid pace. Valuation is being done by valuers and if things go as planned, the transaction will be completed by March 31, said the top official

New Delhi: Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) is likely to complete the disinvestment of its stake in Assam-based Numaligarh Refinery Ltd (NRL) by March-end in FY21 itself, said BPCL Director (Finance) N Vijayagopal during a press conference on Tuesday. He added that the company will also buy out Oman Oil Company’s stake in Bina refinery project in the next 10 days. The news comes just days after Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said that the process of BPCL privatisation is expected to be completed within the first half of the next financial year.

Sale Purchase Agreement for NRL disinvestment approved by BPCL Board

The BPCL Director (Finance) told reporters that at the meeting held on February 8, the Board of Directors of the company has approved the sale purchase agreement for NRL disinvestment. “The consortium of OIL and Engineers India Ltd will acquire 49 percent and the rest 13.65 percent will be sold to the government of Assam,” said Vijayagopal. He added that BPCL is selling its stake in NRL because the government had, as per the Assam Peace Accord, agreed to keep NRL in the public sector.

“NRL stake sale is happening at a rapid pace. Valuation is being done by valuers and if things go as planned, the transaction will be completed by March 31,” said the BPCL Director (Finance). The disinvestment of NRL would be take the BPCL privatisation process a step ahead. 

ALSO READ: BPCL Q3: Net profit zooms 120%; domestic sale at pre-Covid levels

NRL has undertaken a refinery expansion project under which it is expanding its refining capacity from 3 MTPA to 9 MTPA at an investment of Rs 22,594 crore. The expansion is expected to be completed by 2024. The state-run company is also setting up crude oil pipeline from Paradip in Odisha to Numaligarh and a product pipeline from Numaligarh to Siliguri in West Bengal under the same project.

Announcement on Bina refinery stake sale expected in 10 days

Commenting on the status of the plan to purchase Oman Oil Company’s stake in Bina refinery project ahead of disinvestment, the BPCL Director (Finance) said, “Discussions (to acquire 36.62 percent stake of Oman Oil Company) have concluded. We can come out with an announcement of the acquisition of the stake in next 10 days or so.” BPCL holds 63.68 percent stake in Bharat Oman Refineries Ltd (BORL), which operates the 7.8 million tonne refinery in Bina, Madhya Pradesh. 

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