Numaligarh Refinery Expansion to be Braced by Divestment of 61.65 per cent Share of BPCL
Numaligarh Refinery, a Mini Ratna Public Sector, is engaged in the processing of low sulphur crude oil. To expand its profit margins, the company has proposed expansion of its plant by establishing process units for high sulphur content crude oil. As high sulphur crude oil is comparatively cheaper than the one having low sulphur content, this expansion is anticipated to contribute in profitability of the downstream companies. Numaligarh Refinery expansion project of high sulphur crude oil processing plant has been further supported by the divestment of 61.65 per cent share holdings of Bharat Petroleum Corporation (BPCL). BPCL’s gain of 1 per cent on its share by early trade in the fourth quarter of FY 2020 is perceived to be a boon for NRL as it will enhance the company’s market value in the bidding cycle.