Government will issue BPCL EoI in the next few days

NEW DELHI: The government will come out with the expression of interest (EoI) inviting bidders for the privatization of BPCL in a few days, a senior official said on Sunday.

In November, the Cabinet authorized the strategic sale of the oil marketing and refining company (BPCL). Currently, the government owns a 53.29 percent stake in the company, and at current market prices, the sale of shares would reach about Rs 60,000 million for the government.

The tour of investors for the sale of BPCL took place in December in the United States, London and Dubai.

We have received a pretty good response (BPCL roadshow). We will go out with EoI very soon and then investors will be able to collaborate with us through the formal process. It will be issued within a few days, said DIPAM secretary Tuhin Kanta Pandey.

Proceeds from the sale of the BPCL stake will accrue to the government in the next fiscal year beginning April 1.

The department of investment and management of public assets (DIPAM) has set a great objective of Rs 1.20 lakh crore that will be eliminated through the sale of CPSE participation in the next fiscal year. Another rupee of Rs 90,000 will come from the sale of government shares in banks and financial institutions.

In the current fiscal year, the government has breached its budget divestment target of Rs 1.05 lakh crore by a wide margin. The revised estimates (ER) have set the divestment target at Rs 65,000 crore.

From this, the government has eliminated up to Rs 35,000 million from divestment, including two tranches of CPSE ETFs, so far.

We have Rs 35,000 crore. The rest we will make a strategic divestment, then we will have OFS, IPO, repurchase. Together we will have a RE objective, said Pandey.

He said the government plans to present an initial public offer from IRFC and complete the strategic sale of THDCIL and NEEPCO in the current prosecutor.

BPCL operates four refineries in Mumbai, Kochi, Bina in Madhya Pradesh and Numaligarh in Assam with a combined capacity to convert 38.3 million tons of crude oil into fuel.

It has 15,078 gasoline pumps and 6,004 LPG distributors throughout the country.