New Delhi: Divestment of [auto][/auto] Corporation Limited (BPCL) is likely to take more time as the central government may revise its terms of sale, quoting an official the PTI reported on Thursday.
“We need to go back to the drawing board on BPCL. There are issues in terms of consortium formation, geopolitical situation, and energy transition aspects,” the official said.
The Centre has planned to offload its entire stake in BPCL, which is 52.98 per cent in the state-run fuel retailer.
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As of now, the government has received three expressions of interest (EoIs), which includes billionaire Anil Agarwal-led Vedanta Group. However, the financial bids on the offer are yet to be invited, according to the report.
According to the official, BPCL divestment has become difficult in existing terms due to the transition towards green and renewable energy.
“The total stake that may be offered to potential buyers too needs a rethinking in current conditions and easing of terms to help investors in forming a consortium,” the official said.
The news agency sent an email to finance ministry seeking response on the BPCL issue did not elicit any comments.
According to the current market price, the 52.98 per cent stake of BPCL is valued at Rs 45,000 crore.
In March 2020, the government had invited EoIs from several bidders for diluting stake in the state-run oil marketing company and by November in that year it received at least thre bids.
According to report, the three bidders were Vedanta, private equity firms Apollo Global and I Squared Capital's arm subsidiary Think Gas.
Thereafter, these companies were allowed physical inspection of BPCL assets such as refineries and depots as part of the due diligence process.
Once the bidders completed due diligence and other terms and conditions, the government sought financial bids.
The Centre mopped up Rs 13,531 crore in the last financial year. Now it has pegged divestment receipts at Rs 65,000 crore in the current fiscal year.