Govt drops offer to sell 53% stake in BPCL as most bidders express inability to participate
India Today
The government on Thursday dropped its offer to sell its entire 53 per cent stake in BPCL, citing the inability of bidders to participate in the privatisation process.
The government on Thursday withdrew its offer to sell its entire 53 per cent stake in BPCL, saying that majority of bidders have expressed their inability to participate in the current privatisation process due to prevailing conditions in the global energy market.
The government had planned to sell its entire 52.98 per cent stake in Bharat Petroleum Corporation Ltd (BPCL) and invited Expressions of Interest (EoIs) from bidders in March 2020. At least three bids came in by November 2020.
However, the privatisation was stalled after two bidders walked out over issues such as lack of clarity in fuel pricing, with just one bidder left in the fray.
The Department of Investment and Public Asset Management (DIPAM) said in response to the invitation, multiple EoIs were received from interested parties. Qualified Interested Parties (QIPs) had initiated due diligence of the company.
However, the multiple COVID-19 waves and geopolitical conditions affected industries globally, particularly the oil and gas industry.
"Owing to prevailing conditions in the global energy market, the majority of QIPs have expressed their inability to continue in the current process of disinvestment of BPCL," it said.
In view of this, the group of ministers on disinvestment has decided to call off the present EoI process for the strategic disinvestment of BPCL and the EoIs received from QIPs shall stand cancelled, DIPAM said.
