CRL opposes takeover by BPCL

KOCHI, APR 10: Cochin Refineries Ltd (CRL) here presently under the threat of a take over by the Bharat Petroleum Company Ltd (BPCL) has ...

KOCHI, APR 10: Cochin Refineries Ltd (CRL) here presently under the threat of a take over by the Bharat Petroleum Company Ltd (BPCL) has already conveyed its apprehensions in this regard to the centre, according to CRL chairman and managing director K L Kumar.

Last week the Nithish Sen Gupta committee appointed by the centre to study the issue of privatisation of the oil industry had recommended an immediate buy out of the entire government of India stake in CRL by the BPCL.

Talking to pressmen here last night, CRL chairman said "we do not see any merit in being a subsidiary of anyone." Adding that from the CRL angle it would not be useful and not going to add any value to CRL’s future.

However, Kumar said it was only a committee recommendation on which a decision was yet to be taken by the central cabinet. Ever since the Sen Gupta report had come to the light protests have been mounting against the same with the refinery officers association and workers unions dubbing the same as a "move to destroy CRLwhich was making record profits and poised for a phenomenal growth in the near future". Even the Kerala Chief Minister had expressed the state governments reservation in this regard in the state assembly yesterday.

Meanwhile, CRL has posted a record profit before tax of Rs 485 crore during the financial year 1998-99 as against Rs 291.91 crore during the previous year. The profit after tax rose to Rs 335 crore as against Rs 220.41 crore during the last year and this includes updation arrears and incentives of Rs 79.8 crore, Kumar said.

The turnover for the period was Rs 4,163 crore as against Rs 4,374 crore during 1997-98, Kumar told a press conference here on Friday. The drop of Rs 211 crore in turnover was due to the depressed international oil prices, he said.

Crude thruput during the year was an all-time high of 7.77 million tonnes (against the installed capacity of 7.5 million tonnes). The previous record was 7.73 million tonnes (1997-98). Capacity utilisation for the period was 103 per cent hesaid. With a record crude thruput CRL could also set new record among others in production of petrol 7,07,485 tonnes (previous best 694,922tons), aviation turbine fuel 57,509 tonnes (previous best 55,344 tons) and diesel 35,07,133 tonnes (previous best 30,74,197 tonnes).

Story continues below this ad

Kumar said the on-going diesel hydro-desulphurisation (DHDS) project for reducing sulphur content in diesel was progressing fast for completion during the current financial year at a cost Rs 852 crore. Referring to the capacity expansion, Kumar said, a detailed feasibility report (DFR) for a major project to expand the refining capacity from 7.5 million tonnes to 13.5 million tonnes per annum costing Rs 3,994 crore had already been submitted to the Government of India for clearance and the response was awaited.

He said after the capacity expansion to 13.5 mmtpa, CRL would become a world-class refinery.