Government Moves Cabinet Note To Seek 100% Foreign Investment In Oil Companies

Commerce Ministry has floated a draft cabinet note seeking views on a proposal to allow up to 100 per cent foreign investment in oil and gas companies

The Commerce and Industry Ministry has floated a draft cabinet note seeking inter-ministerial views on a proposal to allow up to 100 per cent foreign investment under automatic route in oil and gas public sector undertakings (PSUs), which have an 'in-principle' approval for disinvestment, sources said. The move, if approved by the union cabinet, would facilitate privatisation of India's second biggest oil refiner Bharat Petroleum Corp Ltd (BPCL). The Government is privatising BPCL and is selling its entire 52.98 per cent stake in the company. Sources said that as per the draft note, a new clause would be added in the FDI policy under the petroleum and natural gas sector.