Govt to decide on re-initiating BPCL strategic sale process

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Govt to decide on re-initiating BPCL strategic sale process

The government will decide on re-initiating the process of BPCL strategic sale on the basis of a review of the situation in due course, according to a report by Parliament on Monday.

In a written reply to the Lok Sabha, Minister of State for Finance, Bhagwat Kishanrao Karad said that the COVID pandemic, energy transition issues and geopolitical conditions affected several industries, particularly the oil and gas industry.

The government of India has decided to call off the current EoI process for strategic disinvestment of BPCL. The decision on the re-initiation of the strategic disinvestment process of BPCL depends on the review of the situation in due course, according to Karad.

The government withdrew its offer to sell its entire 52.98 per cent stake in BPCL in May, saying that most of the bidders have expressed their 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 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 majority of Qualified Interested Parties QIPs have expressed their inability to continue the current process of disinvestment of BPCL, according to Karad. The government s stake in BPCL was expressed by mining mogul Anil Agarwal's Vedanta group, US venture funds Apollo Global Management Inc. and I Squared Capital Advisors.

The two funds withdrew after they failed to rope in global investors because of their waning interest in fossil fuels.

The government didn't invite financial bids.