Govt extends BPCL order point in time till November 16

NEW DELHI: Privatisation of India’s 2d-largest explain-bustle refiner and gas retailer Bharat Petroleum Company Ltd (BPCL) has suffered one more lengthen, with the govt. extending the point in time for submission of EoI (expression of ardour) for the fifth time to November 16 amid falling fortunes of world oil majors.

A notification by DIPAM (department of funding and public asset management) on Wednesday, the point in time arena after the fourth extension, cited “requests from bidders and the prevailing scenario increasing out of Covid-19 pandemic” because the reason for the latest postponement.

The governmenthad invited EoIs for promoting its whole 52.98% stake in the firm for the first time on March 7 with a level in time of Might per chance 2. Subsequently, the point in time was extended four cases on March 31, Might per chance 26, July 29 and August 14 citing identical reasons.

The stake is price roughly Rs 50,000 crore at on the present time’s market price and the successful bidder will have to utilize another Rs 30,000 crore for making an open offer.

The selloff was to be the excellent till date and first sale of govt stake in a successful firm via bidding since 2003 when the NDA-1 govt beneath PM A. B. Vajpayee privatised corporations such as gas retailer IBP and zinc producer HZL.

Disinvestment of BPCL is important at this juncture for the cash-strapped govt and finance minister Nirmala Sitharaman’s price range belief to raise Rs 2.1 lakh crore from promoting stakes in govt-bustle entities in 20120-21 financial one year.

BPCL’s 65% stake in Numaligarh refinery in Assam has been kept out of the selloff process since it was built as half of the Centre’s accord with the explain govt. This stake will doubtless be bought by other explain-bustle oil corporations, which were barred from bidding for BPCL.

The firm will give the consumer ready score entry to to 14% of India’s oil refining ability, virtually a quarter of the gas retail market on this planet’s fastest-rising energy market and a giant land bank all the plan via the nation.

BPCL operates four refineries in Mumbai (Maharashtra), Kochi (Kerala), Bina (Madhya Pradesh) and Numaligarh (Assam) with a blended ability of 38 million tonnes every year, or 15 per cent of India’s full refining ability of 249 million tonnes. It also owns 15,177 petrol pumps, 6,011 LPG distributorships and 51 LPG (liquefied petroleum gas) bottling vegetation. The firm distributes 21 per cent of petroleum products consumed in the nation and owns a fifth of the 250 aviation gas stations in the nation.

Any private firm having a gain price of $10 billion is eligible to order. Consortiums of no longer more than four are also allowed to order nonetheless the lead member have to aid a 40% stake in the grouping, whereas others have to bask in a minimum gain price of $1 billion. Changes in the consortium are allowed within 45 days of bidding nonetheless the lead member can no longer be modified.

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