Assam govt enhances equity stake in NRL

 

GUWAHATI:

The Assam government has raised its equity stake in Numaligarh Refinery Limited (NRL) to 18.59 percent on Thursday.

The significant development leaves only 7.41 percent to be gained by the state government later this year, for an enhanced share of 26 percent from 12.35 percent in NRL.

The state government had earlier decided to invest Rs 2,187 crore in NRL, which will be the highest ever investment by the government in any public sector undertaking so far.

A cheque for Rs 500 crore was handed over to Oil India Limited (OIL) at a brief ceremony here.

Speaking on the occasion, Chief Minister Himanta Biswa Sarma, said that the state government had paid Rs 500 crore to OIL in March while another Rs 500 crore was paid on Thursday.

“The remaining Rs 1,150 crore will be cleared by September for a 26 per cent share in NRL. An annual dividend of Rs 500 crore is expected from the investment. We therefore expect to recover the investment made in the share along with the interest within the next four to five years,” Sarma said.

NRL has embarked on major capacity building projects with its current refining capacity of three million metric tonnes (MMT) to be increased to nine MMT by 2024. “This will definitely lead to more earning for the state government,” he said.

The chief minister said that NRL was a very important organisation as it was a refinery set up under the provisions of the Assam Accord and has an emotional connection with the people of the state.

(Edited by Christopher Gatphoh)

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