Financial Daily from THE HINDU group of publications
Saturday, Jun 03, 2006
Financial Daily from THE HINDU group of publications Saturday, Jun 03, 2006 |
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Corporate
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Restructuring Numaligarh Refinery equity recast approved Our Bureau
New Delhi , June 2 The Government on Friday approved the equity restructuring of Numaligarh Refinery Ltd (NRL), a subsidiary of Bharat Petroleum Corporation Ltd (BPCL), whereby Oil India Ltd's (OIL) stake in NRL will increase to 26 per cent from 12.35 per cent. Briefing mediapersons after the Cabinet meeting, the Minister for Parliamentary Affairs, Mr Priyaranjan Dasmunsi, said that OIL would make a total investment of Rs 252.10 crore for the transaction. The restructuring is proposed to be achieved by transferring Oil Industry Development Board's (OIDB) 12.34 per cent equity in NRL to OIL and another 1.31 per cent from BPCL. BPCL has 61.5 per cent holding in NRL. This will help the three public sector undertakings — OIL, NRL and BPCL — to exploit their synergies better for improved performance, the Minister said. The decision is expected to benefit OIL through vertical integration along the value chain, from exploration of crude to marketing of products, as has been the case with Oil and Natural Gas Corporation takeover of Mangalore Refineries and Petrochemicals Ltd in May 2003. NRL, which has Government authorisation to set up 510 retail outlets, completes the linkage for OIL from exploration to marketing, according to an official release.
More Stories on : Restructuring | Petroleum
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