The Union Cabinet has given its approval to enhance investment by Bharat Petroleum Corporation Limited (BPCL) in Bharat Oman Refineries Limited (BORL).
With this, the investment amount of BPCL could be enhanced upto a maximum of 3000 crore rupees by way of subscription of convertible warrants or other instruments.
The infusion of funds by the BPCLs will
- Enable expansion of Bina Refinery in Madhya Pradesh and overcome the implications on account of the erosion of the net worth.
- Enhance the availability of petroleum products in the Northern and Central parts of the country.
- It will also enhance industrial development of Madhya Pradesh and substantial increase in employment and tax earnings in the State.
Background
- BPCL is India’s second-biggest state refiner that functions under the aegis of Union Ministry of Petroleum and Natural Gas.
- It has promoted a joint venture company with Oman Oil Company Limited (OOCL) named BORL. OCC holds 26% stake and BPCL holds 49% stake.