You are here: Home » Companies » News
Business Standard

Engineers India, OIL to jointly bid for BPCL stake in Numaligarh Refinery

The refinery was incorporated on April 22, 1993 and has a 3 million tonnes per annum capacity. It is the largest customer of OIL's crude produced from its North Eastern fields

Numaligarh Refinery | Engineers India | OIL India

Twesh Mishra  |  New Delhi 

oil, gas, offshore, drill, high, refinery, petrol, crude, biding, fields
EIL said that the stake buy enables the Navratna PSU under the Ministry of Petroleum and Natural Gas to diversify its business into downstream oil and gas operations

State-run (OIL) and (EIL) will jointly bid for acquiring Bharat Petroleum Corporation’s (BPCL’s) 61.65 per cent stake in (NRL).

An EIL statement said that OIL would be the leader in the consortium, while EIL would take a minority share.

An OIL statement said: “The bid will be submitted through a formal process. The exact percentage of the stake of OIL and EIL will depend on the extent of Right of First Offer (ROFO), to be exercised by the Government of Assam that already holds 12.35 per cent stake in NRL.”

The refinery was incorporated on April 22, 1993 and has a 3-million-tonnes-per-annum capacity. It is the largest customer of OIL’s crude produced from its North-Eastern fields. The acquisition is expected to improve the synergy in OIL’s portfolio.

EIL said the stake buy enables the Navratna PSU, under the Ministry of Petroleum and Natural Gas, to diversify its business into downstream oil and gas operations. It is currently a leading engineering consultancy and EPC in the areas of hydrocarbons and petrochemicals.

ALSO READ: Piramal group gets RBI approval for debt-ridden DHFL's acquisition

The stake purchase is being seen in light of the Centre’s attempt to divest its shareholding in and privatise the Maharatna public sector undertaking (PSU). This is in line with the November 2019 decision of the Cabinet Committee on Economic Affairs (CCEA), which had announced a strategic disinvestment of 53.29 per cent government’s shareholding in

It was then announced that BPCL’s equity shareholding in NRL would be divested to another Central Public Sector Enterprise (CPSE) operating in the oil and gas Sector.

This move was required because the refinery owes its existence to the commitment made by Government of India in the historic ‘Assam Accord’, signed on August 15, 1985.

The setting up of this refinery was among the major clauses of the accord that ended a violent six-year agitation for ousting illegal migrants from Assam.

NRL was conceived as a vehicle for speedy economic development of the region. It is popularly known as the Assam Accord Refinery and is situated in Numaligarh, Assam, with the Kaziranga National Park in its neighbourhood.

The Assam state government had red flagged any suggestions to privatise NRL and had also put in a bid to acquire a larger share of the mini ratna PSU. currently holds a 61.65 per cent stake in NRL, holds 26 per cent, and the Assam government owns 12.35 per cent.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, February 18 2021. 21:29 IST