The federal government has mentioned that satisfactory curiosity has been acquired for the strategic disinvestment of public sector refiner Bharat Petroleum Company Ltd (BPCL) with a number of suitors submitting expressions of curiosity (EoI). The transaction will transfer to the second stage after scrutiny by the transaction adviser, mentioned a tweet from the Twitter deal with of the Secretary of the Division of Funding and Public Asset Administration (DIPAM).
“For the strategic disinvestment of BPCL, a number of expressions of curiosity have been acquired by the transaction advisor. The transaction will transfer to the second stage after scrutiny by the TA,” it mentioned.
With this, there isn’t a must both defer the present strategic sale course of or search for alternate options, as after the scrutiny of the eligibility of the bidders, the method would attain the value bid stage and at last the profitable bidder can be determined, authorities officers concerned within the course of mentioned.
Sources mentioned that although a number of bids have been acquired, main power giants together with Reliance Industries, Saudi Aramco, UAE’s Adnoc and UK’s BP haven’t positioned curiosity for the state-run oil main. This will decrease competitors and will influence valuations. The federal government additionally doesn’t wish to promote its prized oil entity at decrease valuations.
The present bids for BPCL have barred the participation of public sector undertakings and as per a cupboard determination, solely personal entities may take part. Earlier, public sector undertakings such because the Indian Oil Company (IOC) had indicated their curiosity in BPCL in the event that they have been allowed to take part within the bidding. This feature can now be thought-about provided that the present disinvest course of ends with out a correct end result and as a contingency plan, the federal government decides to take a look at alternate mechanisms to get a suitor for BPCL.
For the federal government, BPCL’s disinvestment is necessary to attain its excessive disinvestment goal of Rs 2.1 lakh crore for the present fiscal. To this point this fiscal, the federal government has garnered simply over Rs 5,000 crore in disinvestment receipts. The federal government is promoting its complete 53.29 per cent stake in BPCL to a strategic investor to mobilise over Rs 50,000 crore as disinvestment receipt.
BPCL operates 4 refineries in Mumbai, Kochi, Bina (Madhya Pradesh) and Numaligarh (Assam), however the facility in Assam is being hived off. The corporate accounts for 15 per cent of India’s refining capability of near 250 million tonnes. The general public sector firm additionally owns 15,177 petrol pumps, 6,011 LPG (liquefied petroleum gasoline) distributorships and 51 LPG bottling crops. BPCL distributes 21 per cent of petroleum merchandise consumed within the nation and owns a fifth of the 250 aviation gasoline stations within the nation.
Regardless of being a superb takeover goal, the corporate sale plan needed to be postponed on 4 events since March. The priority now could be that the pandemic doesn’t end in misery sale of this helpful authorities asset.