The authorities has stated that ample interest has been acquired for the strategic disinvestment of public sector refiner Bharat Petroleum Corporation Ltd (BPCL) with a number of suitors submitting expressions of interest (EoI). The transaction will transfer to the second stage after scrutiny by the transaction adviser, stated a tweet from the Twitter deal with of the Secretary of the Department of Investment and Public Asset Management (DIPAM).
“For the strategic disinvestment of BPCL, multiple expressions of interest have been received by the transaction advisor. The transaction will move to the second stage after scrutiny by the TA,” it stated.
With this, there’s no need to both defer the present strategic sale course of or look for alternate options, as after the scrutiny of the eligibility of the bidders, the method would attain the worth bid stage and eventually the successful bidder could be determined, authorities officers concerned within the course of stated.
Sources stated 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 interest for the state-run oil main. This might decrease competitors and should influence valuations. The authorities additionally doesn’t need 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 Corporation (IOC) had indicated their interest in BPCL in the event that they had been allowed to take part within the bidding. This possibility can now be thought of provided that the present disinvest course of ends with no correct consequence 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 vital to obtain its excessive disinvestment goal of Rs 2.1 lakh crore for the present fiscal. So far this fiscal, the federal government has garnered simply over Rs 5,000 crore in disinvestment receipts. The authorities is promoting its whole 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 firm accounts for 15 per cent of India’s refining capability of shut to 250 million tonnes. The public sector firm additionally owns 15,177 petrol pumps, 6,011 LPG (liquefied petroleum gasoline) distributorships and 51 LPG bottling vegetation. 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.
Despite being a superb takeover goal, the corporate sale plan had to be postponed on 4 events since March. The concern now’s that the pandemic doesn’t end in misery sale of this invaluable authorities asset.