The Bharat Petroleum Corporation Ltd (BPCL) sold its entire stake (61.5%) in Numaligarh Refinery limited(NRL), Assam to consortium of Oil India Ltd(OIL) and Engineers India Limited(EIL) and Government of Assam for Rs 9,876 crore.

• OIL acquired the 54.16% stake in Numaligarh refinery to raise its share holdings to 80.16%, EIL bought a 4.4% stake and the remaining 3.2% was acquired by the Government of Assam.

• This sale clears the way for the privatisation of BPCL, India’s second-largest fuel retailer.

Background:

In keeping with the Assam Peace Accord, The government of Assam has made the decision to keep NRL in the public sector, as a part of this BPCL has to sell its entire stake to the state owned firms.

Sale of Equity shares:

i.The sale purchase agreement was signed on 25th March 2021 between BPCL and the consortium of OIL, EIL for sale of 43.05 crore equity shares in NRL to the consortium for Rs. 9375.96 crore.

ii.The remaining 2.29 crore equity was transferred to the Government of Assam for Rs.499.99 crore.

iii.EIL has paid Rs.699.99 crore for 3.21 crore shares and OIL paid Rs.8675.96 crore for 39.84 crore shares.

Note: The government of India is selling its entire stake (52.98%) in BPCL in the nation’s biggest privatisation till date.