BPCL disinvestment may see PSU participation
OIL & GAS

BPCL disinvestment may see PSU participation

The government may rope in at least two of its blue-chip firms, Indian Oil (IOC) and Oil and Natural Gas Corporation (ONGC), to participate in the tactical disinvestment of Bharat Petroleum Corporation (BPCL). This is an alternative plan if the current bidding process that is open to the private sector domestic and global players fails to get the desired interest or valuation.

Bids closed on Monday. The interest levels for BPCL, however, remain stagnant in the present market conditions, despite having multiple suitors. While Anil Agarwal’s Vedanta group, as well as other overseas funds, might be among the “multiple suitors” for purchasing the state-owned BPCL (Bharat Petroleum Corporation Ltd), several global oil and gas leaders such as Aramco, Adnoc, and others have stayed out of the bidding.

Official sources said they may allow PSU participation in bidding for BPCL if the government shares fetch a lower price in the price bidding stage next month. However, a Disinvestment Department official has ruled the chance for rebidding and mentioned that the interest level remains adequate in the current round.

The sources added that the participation of companies such as IOC and ONGC could be allowed only if there is no response from the prospective bidders. The government is hopeful that the bidding will be successful and that they can finalise the sale of BPCL without involving the PSUs.

Finalising the bidding is important for the government to achieve its high disinvestment target. The disinvestment target for BPCL is around Rs 2.1 trillion for the current fiscal year, but the Government could only garner a meagre Rs 50 billion in the disinvestment receipts. Currently, the government owns a 53.29% stake in BPCL and is interested in selling it off to a strategic investor to mobilise over Rs 500 billion as a disinvestment receipt.

Despite having a good market value and takeover target, the company’s sale plan has been postponed four times since March.

The government may rope in at least two of its blue-chip firms, Indian Oil (IOC) and Oil and Natural Gas Corporation (ONGC), to participate in the tactical disinvestment of Bharat Petroleum Corporation (BPCL). This is an alternative plan if the current bidding process that is open to the private sector domestic and global players fails to get the desired interest or valuation. Bids closed on Monday. The interest levels for BPCL, however, remain stagnant in the present market conditions, despite having multiple suitors. While Anil Agarwal’s Vedanta group, as well as other overseas funds, might be among the “multiple suitors” for purchasing the state-owned BPCL (Bharat Petroleum Corporation Ltd), several global oil and gas leaders such as Aramco, Adnoc, and others have stayed out of the bidding. Official sources said they may allow PSU participation in bidding for BPCL if the government shares fetch a lower price in the price bidding stage next month. However, a Disinvestment Department official has ruled the chance for rebidding and mentioned that the interest level remains adequate in the current round. The sources added that the participation of companies such as IOC and ONGC could be allowed only if there is no response from the prospective bidders. The government is hopeful that the bidding will be successful and that they can finalise the sale of BPCL without involving the PSUs. Finalising the bidding is important for the government to achieve its high disinvestment target. The disinvestment target for BPCL is around Rs 2.1 trillion for the current fiscal year, but the Government could only garner a meagre Rs 50 billion in the disinvestment receipts. Currently, the government owns a 53.29% stake in BPCL and is interested in selling it off to a strategic investor to mobilise over Rs 500 billion as a disinvestment receipt. Despite having a good market value and takeover target, the company’s sale plan has been postponed four times since March.

Next Story
Infrastructure Energy

Arunachal Pradesh Inaugurates First Commercial Coal Mine at Namchik-Namphuk

Union Coal & Mines Minister G Kishan Reddy and Arunachal Pradesh Chief Minister Pema Khandu inaugurated the Namchik-Namphuk coal mine in Changlang district on Monday, marking the state’s first commercial coal mining project.The ceremony included a ‘bhumi pujan’, a tree plantation drive, and the handover of the mining lease along with the flagging off of tools and machinery by Coal Projects (CPPL), officially commencing mining operations.Addressing the gathering, Minister Reddy called the launch “a symbol of new hope and a significant step towards energy security and regional develo..

Next Story
Infrastructure Energy

Panel to Monitor Rs 59.40 Bn Jharia Coalfield Fire Master Plan

A committee will be formed to oversee the implementation of the Rs 59.40-billion revised master plan addressing the Jharia coalfield fire in Jharkhand and the rehabilitation of affected families.Coal Secretary Vikram Dev Dutt has written to the Jharkhand government, stating that the monitoring committee, co-chaired by the Secretary (Coal) and the Chief Secretary, Jharkhand, will meet regularly to track the progress of the revised Jharia Master Plan (JMP).News source: PTI ..

Next Story
Infrastructure Urban

Vedanta to Invest Rs 132.26 Bn to Boost Aluminium Capacity to 3.1 MTPA

Vedanta, led by Anil Agarwal, plans to invest Rs 132.26 billion to increase its aluminium production capacity from 2.4 MTPA to 3.1 MTPA by FY28, sources said. The expansion is a key part of Vedanta’s growth strategy, positioning aluminium at the centre of the company’s roadmap.The aluminium capacity is expected to reach 2.75 MTPA by FY26 before scaling to 3.1 MTPA by FY28. BALCO, in which Vedanta holds a majority stake, is also set to join the one million tonne production club.Aluminium, the world’s second-most consumed metal after steel, is critical for electric mobility, renewable ener..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?