InvestorQ : Is it true that BPCL has sold off its Numaligarh Refinery in Assam?
vaishnavi mhatre made post

Is it true that BPCL has sold off its Numaligarh Refinery in Assam?

vidhya Laxmi answered.
1 year ago

The board of Bharat Petroleum Corporation has finally approved the sale of its 61.25% stake in the Numaligarh Refinery located in the state of Assam for a total consideration of Rs.9,876 crore. This was one of the terms of the divestment of the government stake in BPCL that Numaligarh Refinery would not be part of the deal and it would be sold separately before hiving off the government’s 52.98% stake in head of the divestment of government stake in BPCL.

As part of the deal, BPCL will sell a total of 45.36 crore shares of Numaligarh Refinery Limited to a consortium consisting of two of India’s major PSUs viz Oil India and Engineers India. The Government of Assam will continue to hold a stake of 13.65% in the Numaligarh Refinery even after the exit of BPCL. Of course, the final approval from BPCL shareholders is awaited before the sale can be actioned.

It may be recollected that the government of India proposes to divest its 52.98% stake in BPCL entirely in order to cede control of the oil refining and marketing major. The sale of Numaligarh Refinery was a pre-condition. Numaligarh had reported total revenues of Rs.14,244 crore for the fiscal year 2019-20. NRL has a major advantage as it gets complete excise duty exemption due to being located in the North East region of India.