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Tag: BPCL privatisation

  • Govt to relook BPCL divestment plan submit enlargement

    The authorities will relook at plans for the divestment of Bharat Petroleum Corporation Ltd (BPCL) submit the completion of enlargement plans on the firm, a supply conscious of developments advised reporters on Wednesday. The supply, who didn’t want to be quoted stated, that the privatisation of BPCL had been stalled as there was just one bidder within the fray. The authorities had deliberate to promote its complete 52.98 per cent stake in BPCL and invited Expressions of curiosity (EoI) in March 2020 and obtained bids from Anil Agarwal’s Vedanta group and US enterprise funds Apollo Global Management Inc and I Squared Capital Advisors. The two enterprise funds subsequently withdrew their curiosity within the acquisition.

    “When there is a single bidder, they dictate the narrative,” the individual stated, noting that BPCL was in for a significant enlargement together with the organising of a petrochemicals advanced in Bina in Madhya Pradesh.

    The supply additionally famous that the federal government would look into whether or not it will do partial or full disinvestment of BPCL.

    Volatility in international crude oil costs in addition to intervals during which state-owned oil advertising and marketing corporations have needed to retail gas at a loss might have impacted investor curiosity in BPCL, the second-largest gas retailer within the nation. At present market costs, the federal government’s stake in BPCL is price over Rs 38,000 crore.

  • BPCL divestment path: Cabinet to take up 100% FDI plan for PSU refiners

    The Union Cabinet is ready to take up a proposal to allow 100 per cent international direct funding (FDI) in state-owned oil refiners to clear the regulatory path for the privatisation of Bharat Petroleum Corporation Ltd (BPCL), in keeping with authorities officers.
    The transfer, initially proposed by the Petroleum Ministry, might be positioned earlier than the Cabinet by the Department of Promotion of Industry and Internal Trade (DPIIT). The divestment of the Centre’s 53 per cent stake in BPCL is a key a part of the previous’s disinvestment goal of Rs 1.75 lakh crore for FY22.
    “If you are asking foreign players to bid, then it is natural to permit 100 per cent FDI,” stated a authorities official. Once cleared, the proposal will now not require a profitable international bidder for BPCL to hunt approval from the federal government. There are presently three gamers vying for BPCL, together with Anil Aggarwal’s Vedanta group, and personal fairness companies Apollo Global, and I Squared Capital’s arm Think Gas. Current FDI rules solely allow 49 per cent FDI in public sector petroleum refiners.
    The official famous that whereas present rules allow 100 per cent FDI in non-public sector refining, a clarification could be required since BPCL can be a retailer of petroleum merchandise.

  • No intention of promoting stake in Petronet, IGL, says BPCL

    Divestment-bound Bharat Petroleum Corporation Ltd (BPCL) mentioned on Thursday it isn’t contemplating decreasing its stake in Petronet LNG (PLL) or Indraprastha Gas Ltd (IGL) to stop a brand new proprietor from having to make an open provide to minority traders in each corporations.
    Current Sebi rules would require that the acquirer of the state-owned refiner make an open provide to minority shareholders of Petronet LNG and IGL because of its promoter standing. However, BPCL is working with the federal government to exempt a brand new proprietor from this requirement.
    “BPCL has no intention to pare its stake, in either PLL or IGL,” mentioned N Vijayagopal, Director (Finance), BPCL, including that such a transfer would result in worth destruction for each BPCL in addition to Petronet LNG and IGL. BPCL holds a 12.5 per cent stake in Petronet LNG, India’s largest LNG importer, and a 22.5 per cent stake in metropolis fuel distribution firm IGL.
    Meanwhile, oil advertising and marketing corporations have hiked the value of petrol and diesel 14 instances in May elevating the value of petrol by Rs 3.3 per litre and that of diesel by Rs 4 per litre.

    Petrol is at the moment retailing at Rs 99.94 per litre in Mumbai and diesel at Rs 91.87 per litre.