BRPL also likely to be merged with IndianOil
Guwahati   12-Apr-2008
Close on the heels of developments, which would mark the death knell for Assam Oil Division's marketing operations, there are now apprehensions that the Bongaigaon Refinery's identity and operations are also under serious threat. The alarm has been created by the prospect that the Nitesh Sengupta Committee would merge the BRPL with Indian Oil Corporation Limited following recommendations. Insider sources in BRPL have stated that the proposal to this effect is pending with the Union Ministry of Corporate Affairs after the Extraordinary General Meetings of the companies got over. Among the major concerns, it has been stated that post-merger, there could be a substantial reduction in the contribution to the State exchequer. In such a situation, the Assam Government may not receive the sales tax if IndianOil decides on transferring the product stock of BRPL out of Assam and sell it in other States. It has also been pointed out that excise duty benefit extended to NE refinery has contributed to its profit. The resource thus generated has so far been invested for the overall development of the company in the form of process up gradation, capacity enhancement, implementation of schemes for value addition, among others. Once the merger with IndianOil takes place, the-benefits derived would end up in IndianOil's common pool. No less a setback would take place regarding employment opportunities for local people. After the merger with a bigger entity, there remains the distinct possibility that recruitment would take place at the national level reducing the scope of employment for qualified people of the region. Till recently the refinery has been a frontrunner in recruiting professions through campus, recruitment in Assam. Significantly, fears have been expressed that the merger of BRPL with the IndianOil would even come to affect the socio-economic status of a large, number of communities, some of which enjoy the benefits of BRPL's outreach programme. Once the company becomes part of IndianOil, the BRPL would cease to have much say in the decision making process in supporting several community development and welfare schemes, which would then become finalized by IndianOil headquarter in New Delhi. The impact of the amalgamation is also likely to be felt in awarding of contracts in the BRPL, which for now has witnessed participation of local contractors and engineers. Post-merger, major contracts and procurements will be made through a centralized cell at IndianOil, NewDelhi. Well-placed sources in the BRPL suggest that because the IndianOil administratively operates with considerable autonomy in the various divisions, the aspirations of the local employees as well as the people of Assam could be better served by clubbing all the three refineries of the State into a single division - perhaps in the form of North East Refineries Division.