Bharat Petroleum's Privatisation Has Evoked Overwhelming Response, Says Govt

Minister of State for Finance Bhagwat Karad in a written reply to Parliament said that transaction advisor appointed for the privatisation of BPCL had informed that multiple EoIs had been received

MoS Finance Bhagwat Karad said that the transaction advisor is bound by the non-disclosure agreement for not sharing the information relating to bidders during the currency of the process to ensure competitive non-collusive bidding. Image: Getty

New Delhi: Disinvestment of Bharat Petroleum Corporation Limited (BPCL) has received multiple Expressions of Interest (EoIs).

According to news report, the central government has informed Parliament, while adding that the transaction is in the second stage of the process.

In a written response to a question in Rajya Sabha on BPCL divestment, Minister of State for Finance Bhagwat Karad said, “Transaction advisor appointed for the privatisation of BPCL had informed that multiple EoIs had been received.”

The minister also said that the transaction advisor is bound by the non-disclosure agreement for not sharing the information relating to bidders during the currency of the process to ensure competitive non-collusive bidding.

Regarding a question whether the government has a plan in place to ensure the security of jobs of current employees of BPCL, Bhagwat Karad said that the terms and conditions of the strategic disinvestment in the share purchase agreement suitably address employees’ concerns.

However, it was noted by some analysts that privatisation of BPCL would likely to hit roadblock due to surging global crude oil prices amid the Russia-Ukraine conflict.

Even though petrol and diesel prices have been officially deregulated, the government still nudges the three refiners, IOC, BPCL, and HPCL under its control to keep prices under check.

As analysts have pointed out that the new owners of BPCL will not like a scenario where they have to adhere to these unofficial price regulations to remain competitive.

Already government has postponed the planned stake sale in the state-owned Life Insurance Corporation (LIC) of India to next fiscal year due to economic repercussions of the Russia-Ukraine war.

The Centre was planning to sell a 5 per cent interest in LIC this month, which might have brought in more than Rs 60,000 crore for the government. The IPO would have aided in meeting this fiscal’s reduced disinvestment objective of Rs 78,000 crore.