Assam ready to pay Rs 2,000 crore for additional 13.6% stake in Numaligarh refinery

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Published: January 24, 2020 1:50:04 AM

The central government has clarified that NRL will remain in the public sector and the proposed BPCL disinvestment programme will exclude the firm’s share in Numaligarh.

Assam, Numaligarh Refinery, BPCL, MTPA, IBFPCurrently, the state government owns 12.4% stake in the refinery and 26% is held by Oil India (OIL). Bharat Petroleum (BPCL) owns 61.7% stake in NRL.

The government of Assam is willing to pay Rs 2,000 crore for an additional 13.6% stake in Numaligarh Refinery (NRL) which has a three million tonne per annum (MTPA) petroleum refinery. Currently, the state government owns 12.4% stake in the refinery and 26% is held by Oil India (OIL). Bharat Petroleum (BPCL) owns 61.7% stake in NRL.

The central government has clarified that NRL will remain in the public sector and the proposed BPCL disinvestment programme will exclude the firm’s share in Numaligarh. While speaking about the state’s willingness to pay Rs 2,000 crore at an event here on Thursday, Assam’s commerce and industry minister Chandra Mohan Patowary said that ‘the central government’s stake in NRL should be given to OIL as it has significant operations in the region’.

“We will write to the central government in detail about this,” Patowary added. NRL was set up in accordance with the provisions made in the Assam Accord signed on August 15, 1985. In January 2019, the Union government approved the expansions of NRL’s capacity to 9 MTPA which was expected to cost Rs 22,000 crore. At the end of FY19, NRL’s net worth stood at Rs 5,551 crore. At present, it is building a 130 kilometre Indo-Bangla Friendship Pipeline (IBFPL) for transporting products from its marketing terminal in northern West Bengal to Bangladesh.

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