December 3, 2022

Government has moved a cupboard be aware to hunt views on international funding in state-owned oil firms

The Commerce and Industry Ministry has floated a draft cupboard be aware searching for inter-ministerial views on a proposal to permit as much as 100 per cent international funding underneath computerized route in oil and gasoline public sector undertakings (PSUs), which have an ‘in-principle’ approval for disinvestment, sources stated.

The transfer, if accepted by the union cupboard, would facilitate privatisation of India’s second largest oil refiner Bharat Petroleum Corp Ltd (BPCL).

The Government is privatising BPCL and is promoting its total 52.98 per cent stake within the firm.

Sources stated that as per the draft be aware, a brand new clause can be added within the FDI coverage underneath the petroleum and pure gasoline sector.

According to the proposal, international funding as much as 100 per cent underneath the automated route can be allowed in instances the place an ‘in-principle’ approval for disinvestment of a PSU has been granted by the federal government.

For BPCL privatisation, mining-to-oil conglomerate Vedanta had put in an expression of curiosity (EoI) for getting the federal government’s 52.98 per cent stake within the PSU. The different two bidders are stated to be international funds, certainly one of them being Apollo Global Management.

After collating the views, the commerce and trade ministry would search approval of the union cupboard on the proposal.

At current, solely 49 per cent FDI is permitted by computerized route in petroleum refining by the general public sector undertakings (PSU), with none disinvestment or dilution of home fairness within the present PSUs.

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