Govt might take fresh look at BPCL privatisation
BRAND-NEW DELHI: The federal government may take a fresh appearance at BPCL privatisation, including modifying the regards to sale, an official said. “We require to return to the drawing board on BPCL. There are problems in regards to consortium development, geopolitical situation and energy transition aspects,” an authorities stated.
The government is offering its entire 52.98 percent stake in BPCL for which 3 expressions of interest (EoIs), including one from billionaire Anil Agarwal-led Vedanta Group, have been received.
Financial quotes are yet to be invited.
The official said the shift towards green and sustainable fuel has actually made privatisation hard in existing terms.
“The overall stake that might be used to possible buyers too needs a rethinking in existing conditions and easing of terms to help financiers in forming a consortium,” the authorities stated.
An e-mail sent to the Financing Ministry seeking talk about the story did not elicit a response.
At the present market value, the 52.98 per cent stake is valued at about Rs 45,000 crore.
The federal government invited Expression of Interest from bidders in March 2020 for selling BPCL and by November 2020 a minimum of 3 quotes had actually been available in.
The 3 bidders– Vedanta, personal equity companies Apollo Global and I Squared Capital’s arm Believe Gas– were thereafter allowed physical evaluation of possessions such as refineries and depots as part of the due diligence process.
The federal government was to seek monetary quotes when bidders finished due diligence and the conditions of the share purchase contract were finalised.
The government has pegged disinvestment invoices at Rs 65,000 crore in the current financial, up from Rs 13,531 crore mopped up last fiscal.
Released at Thu, 21 Apr 2022 08:46:14 +0000