The net worth of BPCL is currently 55 thousand crores. The government aims to raise Rs 65,000 crore by selling its entire 53.3 per cent.
New Delhi| The country’s second-largest petroleum company will soon move into private hands. The central government is going to sell more than 53% of its stake in Bharat Petroleum Corporation Limited (BPCL). For this, all preparations have been completed by the government. In the first week of November, the government will take out the tender, after which the process will start.
The net worth of BPCL is currently 55 thousand crores. The government aims to raise Rs 65,000 crore by selling its entire 53.3 per cent. For this, approval will not have to be obtained from Parliament. Last year, the government pressurized ONGC to acquire HPCL. After this, the government had asked LIC to take over the bank in the last financial year after it did not find an investor for the stranded IDBI Bank. The government has also resorted to exchange-traded funds (ETFs) to raise resources under the disinvestment process.
The official said that the cabinet had earlier decided to hold at least 51 per cent stake in PSU companies and now the cabinet will have to take a decision on taking the stake below this level. He said, “The government is preparing a proposal/plan to reduce the stake in select public sector central undertakings (CPSEs) to below 51 per cent”.
The government has secretly abolished the law that has nationalized the company. In such a situation, the approval of Parliament will not be required to sell the company in private hands. In fact, the Modi government abolished the Repealing and Amending Act in the year 2016 itself. In which 187 obsolete and redundant laws went to the dustbin.