Oil India keen on acquiring full control of Numaligarh Refinery

MUMBAI: State-run Oil India Ltd may pitch for full control of Numaligarh Refinery Ltd (NRL), according to two executives aware of the development. NRL is a subsidiary of state-run Bharat Petroleum Corp. Ltd (BPCL).

As part of its strategy to divest stake in BPCL, the government on November 21 decided to carve out NRL from BPCL. BPCL holds 61.65% stake in NRL, while Oil India holds 26% and the government of Assam 12.35%.

Oil India did not reply to an email sent on December 6.

NRL was set up at Numaligarh in Assam’s Golaghat district, in accordance with provisions of the Assam Accord signed on August 15, 1985, and has been associated with the industrial and the economic development of the region.

The capacity of NRL is being expanded from the present 3 million metric tonnes per annum (MMTPA) to 9 MMTPA at an investment of ₹22,594 crore.

The expansion project is targeted to be completed in four years and expected to meet the refining requirements of the North-east region.

The expansion involves laying down a crude oil pipeline f r om Paradip i n Odisha t o Numaligarh and a product pipeline from Numaligarh to Siliguri. NRL enjoys the status of a Mini Ratna public sector unit.

“The Assam state government is keen on keeping NRL as it is central to the state. Oil India has also been lobbying hard to take full control of NRL. Citing security concerns, Oil India and the state government have together conveyed their willingness to the central government to acquire NRL,” said a senior official from an oil marketing company and the first person cited above. He spoke on the condition of anonymity as he is not allowed to speak to the media.

Reports of the BPCL stake sale led to widespread agitations across Assam with the workers’ union in NRL holding regular protests outside the refinery. The refinery has 954 permanent and 2,000 temporary employees.