Top sources told The Financial Express that IBP was, at one point, toying with the idea of confining its stake to 13 per cent. The proposal being worked out then was to rope in either Oil India or the Oil and Natural Gas Corporation, and offer the company concerned another 13 per cent. This way, the combined 26 per cent would represent joint management control.

The plan then was to have the main promoter, Bharat Petroleum Corporation, reduce its stake from the present level of 32 per cent to 26 per cent. And with the government of Assam holding ten per cent, the public issue component would have been 38 per cent.

However, sources said that the ministry of petroleumand natural gas was not in favour of this arrangement and IBP, therefore, had no option but to pay up its entire equity portion. Oil India, which was tipped to take a stake in the project, is not likely to do so and, likewise, ONGC has decided to look for other projects like the Punjab refinery being promoted by Hindustan Petroleum Corporation and the Bina project planned by BPCL and the Oman Oil Company.

IBP is not expected to face any problems to cough up the balance Rs 106 crore as the company has just received its dues from the Oil Coordination Committee. A large chunk of this will be used to settle the 19 per cent equity and the rest used for other joint venture projects like Petronet India, the joint venture pipelines company.

Interestingly, BPCL is believed to have expressed its willingness to up its stake in the Numaligarh project to 49 per cent if IBP were to back out.

However, with the latter confirming its participation, the equity pattern of the project will now stand unaltered. BPCL willhold 32 per cent, IBP 19 per cent, the Assam government ten per cent while the balance will be offered to the public.

According to sources, even if the proposed public issue is delayed due to an unfavourable market, the partners will seek financial assistance from the Oil Industry Development Board (OIDB). The recent report of the ministry of petroleum and natural gas has stated that the company received Rs 130.5 crore from OIDB up to December, 1996, raising the OIDB loan to Rs 379 crore.

Delay in project implementation likely

The Numaligarh refinery is not likely to be commissioned in December this year as originally planned. Sources said that recent projections have indicated that the revised date for commissioning would now be March, 1999.

There is, hence, a strong chance of the public issue hitting the market "between now and February next year."

The promoters are also of the firm opinion that funding for the refinery should not be a constraint and every effort will be made throughalternative routes like the OIDB. Sources added that increasing capacity of the refinery from the present three million tonnes would also be reviewed after commissioning next year.