Government postpones sale of BPCL after ‘LIC shock’! The plan will be reconsidered

Preparations are on to complete the disinvestment process in the current financial year.

At present, the government’s stake in BPCL is about 53% and the government wants to sell this entire stake. In view of this the idea of ​​disinvestment of BPCL was floated. The government had also taken steps in this direction and letters of interest or EOI were invited from the companies.

the government Bharat Petroleum Corporation Limited ,BPCL) has been postponed for the time being. The government is considering the privatization of this company afresh. Reliable sources in the government told ‘TV9 Bharatvarsh’ that after considering many aspects, it was decided to stop the disinvestment of BPCL for now. According to sources, the government will partially disinvest BPCL in any case. (BPCL investment) and it needs serious buyers. It is also being reported by quoting sources that the government may change the terms of sale of BPCL.

The government official said that in view of the different circumstances in the current situation, the process of disinvestment has been stopped for now. Whenever this oil company will be disinvested in future, the government will take steps on it. Energy requirements in the world have changed after the Russo-Ukraine war and many countries are under pressure to supply it. The mutual equation of different countries of the world is also changing rapidly. The privatization of BPCL will be given the green signal only after seriously considering all these issues.

Will the government sell the entire stake?

At present, the government’s stake in BPCL is about 53% and the government wants to sell this entire stake. In view of this the idea of ​​disinvestment of BPCL was floated. The government had also taken steps in this direction and letters of interest or EOI were invited from the companies. The government has also received three letters of interest for the purchase of BPCL. One name in this is that of Vdanta Group, which is headed by well-known industrialist Anil Agarwal. However, financial bids have not been called for BPCL yet. For the time being, this whole process seems to be coming to an end because the government has decided to stop it.

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Effect of sale of LIC!

A government source also said that how much stake of BPCL will be sold, it can also be considered afresh. According to the current market value, the government can get about Rs 45,000 crore from the sale of 52.98 percent stake of BPCL. The process of disinvestment of the company was started in March 2020 and by November, the government had received three bids. Besides Vedanta, the bidders include private equity firm Apollo Global and I Squared’s ThinkGas. The government recently started the disinvestment of the country’s largest insurance company LIC, but it did not start as expected. Shares of LIC were listed on the NSE on Tuesday, down 8.11 percent against its IPO price at Rs 872 per share.