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

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

The government had planned to sell its entire 52.98 per cent stake in Bharat Petroleum Corporation Limited (BPCL). Apart from this, 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 strategic disinvestment of BPCL.