An Oil India Ltd and Engineers India Ltd-led consortium will buy 48% stake in the Bharat Petroleum Corporation Ltd’s subsidiary, Numaligarh Refinery Ltd (NRL). tate-run refiner Bharat Petroleum Corporation Ltd (BPCL) holds 61.65% stake in NRL, while Oil India holds 26% and the government of Assam owns 12.35%.
The consortium may have to shell out over ₹5,500 crore to buy the stake.
As part of its strategy to divest stake in BPCL, the government last November decided to carve out NRL from BPCL. Oil India’s board however is yet to decide on how much the company would be investing in NRL.
“Principal decision has been taken by the government, that Oil India Ltd and Engineers India Ltd. consortium will be acquiring 48% of the BPCL stake,” Harish Madhav, Director Finance, Oil India told analysts post the company’s annual results.
Madhav added that the company has already submitted its expression of interest but NRL’s stake sale is purely linked with that of the government’s stake sale in BPCL.
“So both processes will happen simultaneously almost,” he said, The government has invited initial bids to sell its entire 52.98% stake in BPCL.