Govt withdraws offer to sell BPCL stake

The government withdrew its offer to sell its entire 52.98 per cent stake in BPCL, saying that most of the bidders have expressed inability to participate in the current privatisation process due to the prevailing conditions in the global energy market.

The government planned to sell its entire 52.98 per cent stake in Bharat Petroleum Corporation Ltd BPCL and invite Expressions of Interest EoIs from bidders in March 2020. Three bids came in by November 2020.

The privatisation was stalled after two bidders walked out over issues such as lack of clarity in fuel pricing, with just one remaining bidder left in the fray.

The Department of Investment and Public Asset Management DIPAM said that the multiple COVID 19 waves and geopolitical conditions affected industries worldwide, particularly the oil and gas industry.

The majority of qualified QIPs qualified interested parties expressed their inability to continue the current process of disinvestment of BPCL, due to the prevailing conditions in the global energy market.

The group of ministers on disinvestment has decided to call off the current EoI process for the strategic disinvestment of BPCL and the EoIs received from QIPs.

According to the review of situation, the decision on the re-initiation of the strategic disinvestment process of BPCL will be taken in due course.

Anil Agarwal, the Vedanta group and US venture funds Apollo Global Management Inc. and I Squared Capital Advisors expressed interest in buying the 53 percent stake in BPCL.

The two funds withdrew after failing to rope in global investors due to waning interest in fossil fuels.

The government had not invited financial bids.