Bharat Petroleum Corporation Limited | Business Upturn

Praj Industries forms joint venture with BPCL for Compressed Bio Gas (CBG) plants

Matrika Shukla — Thu, 30 Jan 2025 11:28:11 +0000

Praj Industries Limited, a global leader in sustainable solutions, has announced a strategic partnership with Bharat Petroleum Corporation Limited (BPCL) to form a Joint Venture Company (JVC) aimed at setting up Compressed Bio Gas (CBG) plants across India.

The Board of Directors of Praj Industries approved the formation of the JV at a meeting held today, outlining a 50:50 shareholding structure between the two companies. The new venture will focus on the construction, operation, and maintenance of CBG plants throughout India, in addition to the sale of CBG and its derivatives.

Details of the Joint Venture
The partnership with BPCL will see both companies collaborating on the establishment of CBG plants, with each partner holding an equal stake in the venture. The authorized share capital of the JV will be finalized in due course, and the exact consideration for share subscriptions will be decided at the time of signing the definitive agreement.

The JV will leverage Praj’s advanced CBG technology, alongside BPCL’s widespread distribution network and expertise in the energy sector. This venture is expected to contribute significantly to the growth of India’s bioenergy market, promoting the use of cleaner, renewable energy.

Key Aspects of the Agreement:

Entities Involved: Bharat Petroleum Corporation Ltd. (BPCL)
Scope of JV: The joint venture will construct, operate, and maintain CBG plants across India, including the sale of CBG and its derivatives.
Shareholding: The JV will have an equal partnership, with both Praj and BPCL holding 50% stakes.
Consideration: The final consideration for share subscriptions will be determined at the signing of the definitive agreement.
Rationale: The JV aims to facilitate the commercialization of Praj’s advanced CBG technology, addressing the growing demand for sustainable energy solutions in India.

This collaboration marks a significant step forward for both Praj Industries and BPCL, further reinforcing their commitment to sustainable practices and driving innovation in the renewable energy space. The JV is expected to play a pivotal role in India’s energy transition by promoting the adoption of biofuels and reducing the nation’s carbon footprint.

Agarwal Industrial Corporation secures bulk bitumen orders worth Rs 57.50 Cr from BPCL and IOCL

Matrika Shukla — Tue, 26 Nov 2024 10:42:42 +0000

Agarwal Industrial Corporation Limited, a leading name in the industrial supply sector, is pleased to announce that it has successfully secured significant tenders for the supply of bulk bitumen. The company has bagged orders from two of the most prestigious public sector enterprises in the country – Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL).

The first contract, awarded by BPCL, involves the supply of 12,500 metric tons (MT) of VG 30 grade bitumen, with an approximate contract value of INR 55.00 crores. This order further solidifies Agarwal Industrial Corporation’s strong relationship with one of India’s largest oil refining companies, highlighting its capability to meet the demand for high-quality bitumen in large quantities.

The second contract is from Indian Oil Corporation Limited for the supply of approximately 5,500 MT of VG 30 and VG 40 grade bitumen. This order has an approximate value of INR 2.50 crores, reflecting the company’s strong position in providing essential raw materials for the infrastructure and construction industries.

Agarwal Industrial Corporation Limited has always been committed to maintaining the highest standards of quality and timely delivery. These new orders from BPCL and IOCL further enhance the company’s reputation as a trusted supplier in the bitumen supply sector and open new avenues for future growth.

“We are extremely proud to have secured these prestigious contracts from BPCL and IOCL,” said a spokesperson for Agarwal Industrial Corporation Limited. “These orders not only reinforce our position as a reliable supplier but also reaffirm the trust that leading national oil companies place in us. We look forward to continuing our strong relationship with these esteemed organizations and contributing to their ongoing projects.”

BPCL approves Rs 1,138 crore capex for pipeline expansion

Markets Desk — Thu, 12 Sep 2024 11:29:55 +0000

Bharat Petroleum Corporation Limited (BPCL) has announced a significant capacity augmentation of its Cochin Coimbatore Karur Pipeline (CCKPL) and the Irugur Devangonthi Pipeline (IDPL), along with the establishment of a new oil storage terminal at Palakkad, Kerala. The Board of Directors approved these projects during a meeting held on September 12, 2024.

The CCKPL pipeline, which currently has a capacity of 3.3 million metric tonnes per annum (MMTPA), will see an increase of 3.7 MMTPA. The IDPL pipeline, still under construction, will expand its capacity by 1.1 MMTPA, adding to the existing 2.4 MMTPA. This expansion is set to be completed within 36 months from obtaining statutory approvals or securing the necessary land.

BPCL’s decision to augment these pipelines stems from the need to facilitate the efficient evacuation of finished petroleum products from its Kochi Refinery. The total investment for this capacity addition and the new oil storage terminal at Palakkad is estimated at Rs. 1138 crore, which will be funded internally by BPCL.

“The expansion of our pipeline capacities and the establishment of the new terminal at Palakkad is a strategic move to enhance our operational efficiency and meet the growing demand for petroleum products,” stated V. Kala, Company Secretary of BPCL.

The company’s existing CCKPL pipeline is currently operating at 125% capacity, underscoring the urgent need for this expansion. The IDPL pipeline, once completed, will significantly bolster BPCL’s infrastructure, ensuring a smoother and more efficient distribution network across key regions.

BPCL reports 47% rise in net profit to ₹2,805 crore in Q3

Himanshu Mishra — Mon, 31 Jan 2022 14:27:18 +0000

Bharat Petroleum Corporation Ltd (BPCL) has announced a consolidated net profit of ₹2,805 crore for the quarter ended 31 December 2021. This is a rise of 47% from a year-ago period. Income from operations surged up to 35% to ₹1.17 trillion in the third quarter as compared to ₹87,292 crore in the same quarter last year.

The petroleum major told its Board of Directors also announced a second interim dividend of Rs 5 per share for the Financial Year 2021-22. On Monday, before the results, BPCL shares surged up to 3.75% to stop at ₹396.85 on NSE. Moreover, the company’s Board has fixed Friday, 11 February 2022 as the record date to deduce the eligibility of the shareholders to receive the told interim dividend. On a standalone purpose, the company’s net profit fell 11% year-on-year to ₹2,462 crore during the third quarter.

During the quarter, the operating margin of the firm stood at 3.04 per cent compared to 3.41 per cent in Q2FY22 and 3.79 per cent in Q3FY21. The net profit margin was at 2.38 per cent against the 3.14 per cent and 2.18 per cent, respectively.

The Average Gross Refining Margin (GRM) during nine months ending on 31 December 2021 is $6.78 per barrel as against $2.90 per barrel in April-December 2020 period. The market sales during the nine months duration, however, came in at 30.69 MMT as compared to 27.57 MMT during last year period.

Bharat Petroleum to install EV charging stations at 7,000 petrol outlets

News Desk — Fri, 05 Nov 2021 07:55:32 +0000

Over the next several years, Bharat Petroleum Corporation Limited (BPCL), a ‘Maharatna’ and Fortune Global 500 company, plans to install charging stations at roughly 7,000 petrol pumps. Indian Oil Corp (IOC), the country’s largest oil company, stated earlier this week that it will build 10,000 charging stations for electric cars (EVs) over the next three years.

On Monday, Prime Minister Narendra Modi made a bold promise to reduce emissions in the world’s third-largest emitter to zero by 2070. BPCL has a nationwide distribution network with 19,000 retail units (fuel stations).

“The electric car charging infrastructure will offer the company with a new revenue stream as well as a hedge against the risk of auto fuel displacement,” says the corporation in a statement released on Friday.

“As automakers turn to electric vehicles to attract new customers, India’s electric car ecosystem is projected to grow fast in the next year’s,” the statement further read.

In comparison to companies that have yet to build the physical infrastructure of retail outlets, BPCL, the second-largest oil marketing company (OMC), is a formidable player with a nationwide network of fuel stations and distributors that can assist in providing EV charging in a timely manner.

“Over the next five years, we hope to reach 7,000 stations to serve the burgeoning EV industry, and these stations will be called as ‘Energy Stations,'” said Arun Kumar Singh, Chairman and Managing Director of Bharat Petroleum.

EVs, or electric vehicles, make up a minuscule percentage of all vehicles on the road today. EVs account for roughly 1% of all new 2-wheelers sold, while the share in the four-wheeler category is only 0.2 percent. EVs account for 25% of new three-wheeler sales. Electric vehicles are expected to account for 30% of new two-wheelers and 35% of new three-wheelers by 2030. In 2030, electric vehicles will account for 15% of all four-wheelers sold.

BPCL privatisation hits a roadblock as bidders struggle to find partners: Report

Cheryll Jain — Mon, 25 Oct 2021 12:13:21 +0000

Indian Government’s endeavour to privatise Bharat Petroleum Corp. has hit a roadblock as potential bidders struggle to find partners to reduce the rate of financial risk with buying the state-run refiner-cum-fuel retailer.

According to sources, the three potential suitors — the Vedanta Group, Apollo Global Management and I Squared Capital — have been in talks with several global energy giants and pension funds but have not found success in finalising partners for the BPCL bidding.

The reluctance of the companies to invest in the fuel retailer stems largely from the newly adopted sustainability rules and the global action of energy transition in light of the increasing risk posed by climate change, sources claimed. Moreover, the ramifications of the pandemic have also become a cause of apprehension, discouraging firms from making large-scale investments in the fossil fuel sector.

The hindrance in the process of finalising bidders for the sale is expected to slow down what is being termed as the nation’s biggest privatization drive. The selling of BPCL is estimated to generate $13 billion for the government, which holds a 53 per cent stake in the entity, and other shareholders.

The sources further added that the high valuation of BPCL has compelled the government and potential investors to look out for a consortium of bidders that can provide a strong technical and financial foundation for the acquisition.

“Bidders are conducting due diligence, but uncertainties over the bidder consortium and process complexity, including valuation may lead to potential delays,” American-based credit rating agency Fitch Ratings Ltd. predicted last month.

The slow-paced privatisation process of BPCL is likely to clash with the Centre’s aim to conclude the selling process by the end of the current financial year in March, for which the bidding process was scheduled to commence in November.

BPCL privatization and NRL stake sale discussion to resume

Sanah Shah — Thu, 04 Feb 2021 06:41:30 +0000

According to ET Now, an Inter-Ministerial group will meet today, 4th February 2021 to discuss the privatization of Bharat Petroleum Corporation Limited (BPCL). Another topic of debate is the Numaligarh refinery stake sale.

Various bluechip public sector undertakings such as BPCL and Air India have been moving towards privatization. The preliminary work began in late 2019 and 2020 was supposed to be the landmark year for the shift of India’s 3 greatest PSUs — BPCL, Air India and Shipping Corporation of India (SCI) — to privatization.

Unfortunately due the outbreak of COVID-19, these timelines were postponed into the near future but the government has made it clear that it will not back out of its disinvestment plans with Finance Minister Nirmala Sitharaman.

Oil Minister Dharmendra Pradhan, Cabinet Minister for Petroleum & Natural Gas, the nodal ministry for BPCL, went to the extent of saying that, “the government has no business to be in the business”.

Numaligarh Refinery Limited (NRL) is a subsidiary of BPCL and therefore, is being bought out as part of the government’s plan to divest itself of BPCL. The state-refiner BPCL held 61.65% stake in NRL, while Oil India held 26% and the government of Assam held 12.35%.

Harish Madhav, Director Finance, Oil India told analysts post the company’s annual results in 2020 said, “Principal decision has been taken by the government, that Oil India Ltd and Engineers India Ltd. consortium will be acquiring 48% of the BPCL stake.”

The second-largest fuel retailing company in India had received three initial bids to purchase controlling stake. Mining-to-oil conglomerate Vedanta confirmed their bid on November 18, 2020 as they put in an expression of interest (EoI) for buying the government’s 52.98% stake. The other two are expected to be global funds, one of them being Apollo Global Management.

Pradhan said, “Lot of interest is there,” at a webinar series on ‘The Road To Atmanirbhar Bharat’ organised by Swarajya Magazine.

BPCL is trading at Rs 418.35 at 11:52 AM, up 0.83% as against the previous close of Rs 414.90 on the NSE. The opening for the day was Rs 413.60.

Prices of Petrol and Diesel reach a high with a rise of 35 paise per liter

Sanah Shah — Tue, 26 Jan 2021 13:13:54 +0000

On 26th January 2021, Petrol and Diesel prices rose by 35 paise. They were unchanged for two days. The cost of petrol has touched a record high of Rs 86.05 per liter in Delhi.

After the 35 paise increase, the price of petrol and diesel stood at Rs 92.62 per liter and Rs 83.03 per liter in Mumbai, respectively. The price of petrol and diesel in Delhi is Rs 86.05 per liter and Rs 83.03 per liter, respectively.

Fuel prices may vary from state to state, this change is owed to the local sales tax or VAT which are now at historic highs in the country. There are pleas to cut the excise duty so the burden on consumers is lessened.

Dharmendra Pradhan, oil minister criticized the Saudi Oil output cut for the hike in oil prices but remained non-committal on tax cuts.

While tap oil explorer Saudi Arabia has promised additional voluntary output slash of 1 million barrels per day in February and March, which has caused price climbing to the maximum since the pandemic began.

State-owned fuel retailers such as Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) on 6th January, 2021 recommended daily price revisions after nearly a month long break.

Since then rates have increased by Rs 2.34 per liter on petrol and Rs 2.36 on diesel.

Following international oil prices solidifying in hopes of demand returning from the launch of COVID-19 vaccines in various countries, including India.

Before the present high crude prices led to price hikes this month. On 4th October,, 2018, fuel prices had peaked – a record high. At that moment, the government had reduced excise duty on petrol and diesel by Rs 1.50 per liter in a bid to ease inflammatory pressure and promote consumer confidence. At the same time, state-owned fuel retailers cut prices by another Re 1 a liter which they recovered later.

68 more patents of BPCL awaiting for the approval

News Desk — Mon, 06 Jul 2020 13:04:02 +0000

68 more patents of BPCL awaiting for the approval. Bharat Petroleum’ Corporate Research and Development Center(CRDC). Which is hitting marks in the innovation. Also in the 19 years it has already hold 62 patents from India. And other countries. Moreover, 68 are waiting for approval.

Sanjay Bhargava executive director and chief of CRDC told PTI. That 20 out of patented innovations are commercialized and deployed at BPCL facilities. Moreover, 5 to 6 patents would be filled by them by next month.

BPMarrk is one of the patents. “BPMarrk drastically slashes the time required. To generate results from three to four weeks to merely one hour. Patented in India as well as the US. Including Europe and Africa”. Bhargava said.

“Bharat GSR CAT is a high-performance catalyst. MOreover, for reduction of sulfur in gasoline. World’s first catalyst prepared from fluid catalytic unit (FCCU) spent catalyst. Hence, the novel catalyst is only one-third the cost of imported alternatives” he said.

BPCL shares revived after facing decline by 3% in early trade, reports weak Q4 results

Nishi Trivedi — Thu, 04 Jun 2020 09:48:10 +0000

On Thursday, the shares of Bharat Petroleum Corporation Limited (BPCL) revived after trading low in the early session. At 14.34 IST, the corporation’s shares were trading at 357.35, up by 8.30 points or

The oil refiner on Wednesday posted its net loss of Rs 1,819.56 crore in the fourth quarter ended in March. Moreover, this was against the net profit of Rs 2,051.43 in the same quarter last year.

Further, the corporation’s revenue from operations during the quarter dropped by 4.76 percent to Rs 81,829.60 crore.

“The outbreak of COVID-19 globally and resultant lockdown in many countries, including from March 25, 2020, in India, has had an impact on the business of the Group. Consequently, lower demand for crude oil and petroleum products has impacted the prices and therefore refining margins globally,” the corporation said in its filing to the stock exchange.

“Due to this, certain finished goods inventory and certain raw materials of the Group have been valued at net realizable value/replacement costs which are lower than cost. The impact of the same has been reported under exceptional item for Rs 1,310.35 crore,” the filing further stated.

In the current trading session, BCPL is among the NSE gainer. Moreover, Vedanta, Zee Entertainment, Tech Mahindra, and Sun Pharma are the top gainers.

In addition, the rupee ended 11 paise lower at 75.57 per US dollar after the indices entered unstable trade. This is the second day in a row that rupee ended low after Wednesday’s close at 75.46 per dollar.