IOC, other PSUs not to bid for BPCL, hints Oil Minister

New Delhi, November 21

Oil Minister Dharmendra Pradhan today hinted that public sector firms such as Indian Oil Corporation (IOC) may not be allowed to bid for buying government stake in Bharat Petroleum Corporation Ltd (BPCL), for which a buyer may have to shell out as much as Rs 90,000 crore.

The Cabinet Committee on Economic Affairs had on Wednesday decided to sell the government's entire stake in the country's second-largest state refiner BPCL and India's largest shipping company Shipping Corporation of India (SCI). It also approved privatisation of Container Corporation of India while also giving nod to paring stake below 51% in select public sector undertakings but without losing control.

"Since 2014, we have a clear vision that the government has no business to be in business," Pradhan told reporters here. "We have examples of 2-3 sectors such as telecom and aviation where ushering in private participation has led to customers benefitting from price cuts, efficiency, and better service. And yesterday (on Wednesday), several reformist decisions were taken." BPCL will give buyers ready access to 14% of India's oil refining capacity and about one-fourth of the fuel marketing infrastructure in the world's fastest-growing energy market.

It, however, will be sold after carving out Numaligarh Refinery from its portfolio and given to a pubic sector unit.

"Numaligarh refinery was set up as per Assam Accord and it will remain a public sector unit. Assam Chief Minister had requested Prime Minister (Narendra Modi) to retain public sector character of Numaligarh Refinery and that has been accepted," he said. — PTI

Govt’s stake valued at Rs 62,000 crore 

• The Cabinet Committee on Economic Affairs had on Wednesday decided to sell the government’s entire stake in Bharat Petroleum Corporation Ltd 

• BPCL will give buyers ready access to 14% of India’s oil refining capacity and about 25% of fuel marketing infrastructure in the world’s fastest-growing energy market

• At the current trading price of BPCL, the government’s 53.29% stake is valued at a shade less than Rs 62,000 crore. On top of this, the acquirer will have to make an open offer to buy an additional 26% stake from minority shareholders for about Rs 30,000 crore