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Bharat Petroleum Will Be Sold To Private Firms This Year; Govt Sources Confirm

As per reports from Zee Business, the government is committed to the divestment process of Bharat Petroleum Corporation Limited (BPCL) and it will be completed by the end of 2020, said top government sources.

Read on to find out more.

Govt Ready To Sell 52.98% Stake In BPCL!

The government is planning a strategic disinvestment of its entire shareholding in BPCL, one of India's largest oil refinery.

This comprises of 114.91 crore equity shares, which constitutes 52.98% of BPCL's equity share capital along with transfer of management control to a strategic buyer (except BPCL's equity shareholding of 61.65% in Numaligarh Refinery Ltd), the notice inviting offer said.

Earlier it was reported that BPCL disinvestment will not happen this year. However, the government has slammed these rumours and said that the government is ready for divestment.

As per the reports, though there has been a delay, the divestment process will be completed this year. The process is expected to end by the FY 2021, say the above mentioned sources.

The report also states that the delay is cited to the ongoing COVID-19 pandemic as bidders requested the government for pushing the deadline.

All in all the delay doesn't mean that the process won't be completed.

The Back Story Of The 'Delay'!

In November, 2019, the Cabinet had approved the sale of the government's entire 52.98% stake in BPCL.

However, offers seeking expression of interest (EoI) or bids showing interest in buying its stake were invited only on March 7.

The EoI submission deadline was May 2, but on March 31 it was extended up to June 13. On May 26, it was extended to July 31 and now it has been extended till September 30.

Recently, the Centre had extended the deadline for bidding for the privatisation of BPCL by 2 months to September 30 for the 3rd time.

The Department of Investment and Public Asset Management (DIPAM) said in a notice, "In view of the further requests received from the Interested Bidders and the prevailing situation arising out of COVID-19, last date and time for submission of EoI is extended up to September 30, 2020."

We will keep you updated on further developments.

Dailyhunt
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: Trak.in
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