BPCL sells 54.16% stake in Numaligarh Refinery to Oil India Ltd; 4.4% to Engineers India Ltd

The sale of Numaligarh Refinery Ltd (NRL) gets the route for privatization free from India’s second-biggest fuel retailer.BPCL sells 54.16% stake in Numaligarh Refinery to Oil India Ltd; 4.4% to Engineers India Ltd

New Delhi, Mar 26 (PTI) Privatization-bound Bharat Petroleum Corporation Ltd (BPCL) on Friday said it has sold its whole 61.5 percent stake in Numaligarh Refinery in Assam to a consortium of Oil India Ltd and Engineers India and Government of Assam for Rs 9,876 crore.

OIL purchased a 54.16 percent stake to bring its shareholding up in the processing plant to 80.16 percent, the organization said in stock trade filings.

Its accomplice, Engineers India Ltd (EIL) purchased a 4.4 percent stake and the equilibrium 3.2 percent was procured by Government of Assam.

The sale of Numaligarh Refinery Ltd (NRL) gets the path for privatization free from India’s second-biggest fuel retailer.

With regards to the Assam Peace Accord, the public authority had chosen to keep NRL in the public area. As a component of this, BPCL was to sell its whole 61.65 percent stake to state-possessed firms.

A consortium of OIL, EIL, and Government of Assam communicated interest in purchasing the stake.

“A Sale Purchase Agreement has been endorsed on March 25, 2021 among BPCL and the consortium of OIL and EIL available to be purchased of 43.05 crore in NRL to the consortium at a thought of Rs 9,375.96 crore,” BPCL said in the recording.

The excess 2.29 crore value shares have been moved to Government of Assam for Rs 499.99 crore.

“Post these obtaining OIL’s total value shareholding in NRL (counting pre-securing 26% shareholding) is 80.16 percent,” the firm said in a different recording.

EIL said it paid Rs 699.99 crore for 3.21 crore partakes in NRL while OIL purchased 39.84 crore shares for Rs 8,675.96 crore.

“Administrator and Managing Director OIL, who is by and by a chosen one overseer of OIL on the leading body of the Target Company (NRL) would be assigned as Chairman,” it said.

Existing chiefs named by BPCL on the leading group of NRL would leave and privileges of BPCL to choose chiefs would be doused, it said.

BPCL sold offers in NRL at a price of Rs 217.75 per share, totalling Rs 9,875.96 crore.

NRL works 3 million tons for every annum oil processing plant in Assam.

OIL at present holds a 26% stake in NRL while the Government of Assam has around 12.35 percent.

Post NRL sale, BPCL would be left with three processing plants at Mumbai, Kochi (Kerala) and Bina (Madhya Pradesh).

The public authority is selling its whole 52.98 percent stake in BPCL in the country’s greatest privatization to date.

Vedanta Group and private value firms Apollo Global and I Squared Capital’s Indian unit Think Gas have placed an outflow of interest for purchasing the public authority’s stake.

The sale of NRL is the initial move towards the disinvestment of BPCL.

The public authority has effectively demonstrated that it hopes to finish BPCL privatization by the main portion of the financial starting April (2021-22).

The sale is critical to accomplishing the Rs 1.75 lakh crore disinvestment target set for 2021-22.

BPCL will give the purchaser responsibility for 15.33 percent of India’s oil refining limit and 22 percent of the fuel showcasing share.

NRL is hoping to grow its refining limit from 3 million tons for each annum to 9 million tons per year at a venture of Rs 22,594 crore. The venture is required to be finished by 2024.

The extension additionally includes setting up of raw petroleum pipeline from Paradip in Odisha to Numaligarh and an item pipeline from Numaligarh to Siliguri in West Bengal.

In the approach, the privatization, BPCL a month ago consented to buyout Oman Oil Company’s offers in the Bina processing plant project for about Rs 2,400 crore.

BPCL holds a 63.68 percent stake in Bharat Oman Refineries Ltd (BORL), which constructed and works at a 7.8 million ton oil treatment facility at Bina. It will purchase 36.62 percent of the value share capital from OQ S.A.0.C. (previously known as Oman Oil Company S.A.0.C.) for Rs 2,399.26 crore.

BORL was joined in February 1994 to fabricate a processing plant at Bina. The unit at first could transform 6 million tons of raw petroleum every year into fuel, which was thusly raised to 7.8 million tons.

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