Numaligarh Refinery disinvestment to be completed before BPCL: DIPAM

• An Oil India Ltd and Engineers India Ltd-led consortium are set to buy 48 percent stake in the Numaligarh Refinery

• In November 2019, the government had announced its decision to carve Numaligarh Refinery out of BPCL before the latter's privatisation

New Delhi: The disinvestment of Numaligarh Refinery Ltd will be completed before the closing of BPCL privatisation process, DIPAM (Department of Investment and Public Asser Management) said in a response to queries raised by potential bidders. A clarification released by DIPAM said on Wednesday, "The divestment of NRL by BPCL shall be completed before the closing of BPCL disinvestment process. The decision with regard (to) the utilisation of proceeds from the NRL sale shall be communicated prior to submission of financial bid."

On being asked when DIPAM is looking to close the Numaligarh Refinery disinvestment, DIPAM Secretary Tuhin Kanta Pandey refused to divulge details about the timeline but added that the Numaligarh Refinery disinvestment process will move along with BPCL disinvestment and the deal will be closed prior to BPCL.

Oil India, EIL consortium to buy Numaligarh Refinery

An Oil India Ltd and Engineers India Ltd-led consortium are set to buy 48 percent stake in the Numaligarh Refinery Ltd, a report by Mint had said on July 1. BPCL holds 61.65 percent stake in NRL, while OIL holds 26 percent and 12.35 percent stake is held by the government of Assam. In November 2019, the government had announced its decision to carve Numaligarh Refinery out of BPCL before the latter's privatisation and had said that NRL will continue to be public sector entity.

BPCL disinvestment: Queries pour in from potential bidders

A source, who spoke to PSU Watch on the condition of anonymity, said that queries from potential bidders have been pouring in and the multiple deadline extensions have been given in response to requests from bidders. 

Responding to a query on shares held by the government in BPCL, DIPAM said, "It is possible that these shares may be retained, cancelled or disposed prior to the Proposed Transaction; and correspondingly the total number of outstanding shares / capital structure of BPCL may change. The number of shares held, and to be sold, by the GoI in the Proposed Transaction will not change and remain firm at 1,14,91,83,592."

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