Numaligarh Refinery makes record profit – is Assam benefitted

By- Correspondent| Date- September 10, 2011

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The Numaligarh Refinery Limited (NRL) has been often spoken about as something very close to the heart of people of Assam, as it was one of the outcomes of the blood of 855 youth who sacrificed their lives during the historic Assam agitation. The Refinery itself owes its existence to the historic “Assam Accord”, signed on 15 August 1985 between the delegation of All Assam Students Union (AASU) and Government of India, led by then Prime Minister Rajiv Gandhi as an attempt to boost economic development of the region.

Yet, the question that has been often been asked is to the extent the NRL has been or would be able to contribute to the economic development of the state; and it became prominent once again when the Numaligarh Refinery Limited (NRL) yesterday announced its profit and turnover details for the FY 2010-11. This was done in the 18th annual general meeting of NRL, held in Guwahati at the registered office.

The NRL has claimed that it recorded a net profit of Rs 279 crore in the Fiscal Year 2010-11, with an increase of 20.3% profit from previous year’s figures of 232 crores.

In fact the profit before tax (PBT) was a high Rs 415 crore with 14.6% increase from previous year’s figure of Rs. 362 crore. On the turnover details, during the year 2010-11 NRL achieved a record sales turnover of as high as Rs 8,972 crore with a growth of 13.9 % over previous year’s turnover of Rs 7,874 crore. On the other hand, the total dividend to be paid by NRL for the period to its shareholders BPCL, OIL and the Government of Assam was a total of Rs 110.34 crore.

The Government of Assam would however receive only Rs 13.62 crore as dividend as it has equity of just 12.35 per cent in NRL.

Mentionable that apart from the Digboi oil refinery of Assam, all other three refineries in Assam (the ones in Bongaigaon, Numaligarh and Guwahati) was established as a result of strong protests by people of Assam, mostly student bodies, against the crude oil of the state being pumped out to other states for refining.

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