Government Defers Disinvestment Of BPCL For The Time Being

Government defers disinvestment of BPCL for the time being and withdraws the proposal to sell a 53% stake.

The government on Thursday withdrew its proposal to sell its entire 53 percent stake in Bharat Petroleum Corporation Limited (BPCL).

It said that most of the bidders have expressed their inability to participate in privatization due to the current situation in the global energy market.

Let us tell you that the government had planned to sell its entire 52.98 percent stake in Bharat Petroleum Corporation Limited (BPCL).

Government defers disinvestment of BPCL: Apart from this, an Expression of Interest (EoI) was offered to the bidders in March 2020.

There were at least three bids till November 2020. However, it was stalled due to issues like lack of clarity in fuel pricing of two bidders, leaving only one bidder in the fray.

The Department of Investment and Public Asset Management (DIPAM) said that several COVID-19 and geopolitical situations have affected industries globally.

The oil and gas industry in particular has been affected.

DIPAM (Department of Investment and Public Asset Management) has expressed its inability to continue with the current process of disinvestment of BPCL due to prevailing conditions in the global energy market and due to QIP (Qualified Institutional Placement).

In view of this, the Group of Ministers on Disinvestment has decided to discontinue the existing Expression of Interest (EOI) process for the strategic disinvestment of BPCL.

A decision on restarting the strategic disinvestment process of BPCL will be taken at an appropriate time based on a review of the situation.

Mining mogul Anil Agarwal’s Vedanta Group and the US venture fund Apollo Global Management Inc and I Squared Capital Advisors had shown interest in buying the government’s 53 percent stake in BPCL.

But both the funds withdrew after failing to attract global investors amid declining interest in fossil fuels.

Preparations for privatization of two public sector banks, steps will be taken in few months: Sources.

The government is moving towards the privatization of two public sector banks (PSBs) and will take appropriate steps in the coming months.

The news agency has given this information by quoting sources. According to sources, the government is committed to the privatization of two public sector banks and is going ahead with it.

In the Union Budget for 2021-22, the government announced the privatization of two public sector banks during the year and approved a policy of strategic disinvestment of public sector enterprises.