Post-stake sale, BPCL’s LPG business to be in new SBU; new owner to take call after 3 yrs
Privatisation-bound Bharat Petroleum Corporation Ltd’s (BPCL) new owner will after three years of takeover get a right to decide on retaining the business of selling subsidised LPG, which in the intervening period will be transferred into a new unit to continue the flow of government subsidy, a top official said. Government subsidy will continue to be given to BPCL customers if the new owner chooses to retain the business after three years, the official said.
The firm’s cooking gas LPG customers will be transferred to other state-owned firms, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), in case the new owner does not want to continue with such a business, the official added.
The government is keen to continue providing subsidy to 7.3 crore domestic cooking gas (LPG) consumers of BPCL even after the firm’s privatisation. To resolve the conflict of paying the dole to a private company, it has been decided to transfer the LPG business of the firm into a new strategic business unit (SBU).
The SBU will maintain separate accounts, with records of subsidy received and digitally transferred to user accounts, the official said.
The accounts will be audited to ensure no pilferage, he said.
