Centre okays BRPL’s merger with IOCL

GUWAHATI, March 19 – After years of discussions and speculations, the Government of India finally issued the order for amalgamating the Bongaigaon Refinery and Petrochemicals Limited (BRPL) with the Indian Oil Corporation Limited (IOCL). Official sources said that discussions for the amalgamation were going on for years and finally on March 9 this year, the Ministry of Corporate Affairs of the Government of India issued the final order in this regard. Interestingly, the Ministry issued the final order of amalgamation of the BRPL with the IOCL after the declaration of the dates of the Lok Sabha polls.

Copies of the final order of the Ministry were communicated to all concerned including the employees’ union of the BRPL by the Ministry of Corporate Affairs on March 12.The final order of the Ministry confirming the amalgamation said that confirmation petitions for amalgamation were filed by the IOCL on March 3, 2008, while the BRPL submitted the same on March 13 last year. The order said that the amalgamation would result in consolidation of the business of both the companies and this would enable the joint entity to harness and optimize the synergies of both the BRPL and IOCL. The order further said that the amalgamation was aimed at achieving appropriate size and scale of operation through integration of the capabilities of both the companies.

The companies, in their petitions, further said that the amalgamation would enable pooling of financial, managerial and technical resources, personnel capabilities, skills, expertise, technologies, etc., resulting in logistic advantages and cost reduction.The order further said that the Board of Directors of the BRPL approved the amalgamation scheme in two meetings on July 7, 2005 and November 29, 2006, while the Board meeting of the IOCL approved the same on June 30, 2005 and November 29, 2006.It may be mentioned here that though it was felt that the amalgamation was required for the survival of the BRPL, a section of officers of the company were of the view that the company would lose its separate entity after the move is completed