bpcl: Govt drops offer to sell 53% stake in BPCL as most bidders express inability to participate – Times of India

NEW DELHI: The federal government on Thursday withdrew its supply to promote its total 52.98 per cent stake in BPCL, saying that majority of bidders have expressed their incapability to take part within the present privatisation course of as a consequence of prevailing situations within the international power market.
The federal government had deliberate to promote its total 52.98 per cent stake in Bharat Petroleum Corporation Ltd (BPCL) and invited Expressions of Curiosity (EoIs) from bidders in March 2020. At the least three bids got here in by November 2020.
Nonetheless, the privatisation was stalled after two bidders walked out over points reminiscent of lack of readability in gasoline pricing, with only one bidder left within the fray.
The Division of Funding and Public Asset Administration (DIPAM) mentioned the a number of Covid-19 waves and geopolitical situations affected industries globally, significantly the oil and gasoline business.
“Owing to prevailing situations within the international power market, the vast majority of QIPs (certified events) have expressed their incapability to proceed within the present technique of disinvestment of BPCL,” it mentioned.
In view of this, the group of ministers on disinvestment has determined to name off the current EoI course of for the strategic disinvestment of BPCL and the EoIs obtained from QIPs shall stand cancelled, DIPAM mentioned.
“Determination on the re-initiation of the strategic disinvestment technique of BPCL will probably be taken sooner or later based mostly on assessment of state of affairs,” it added.
Mining mogul Anil Agarwal’s Vedanta group and US enterprise funds Apollo World Administration Inc and I Squared Capital Advisors had expressed curiosity in shopping for the federal government’s 53 per cent stake in BPCL.
However the two funds withdrew after failing to rope in international buyers amid waning curiosity in fossil fuels.
The federal government had not invited monetary bids.

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