Privitisation Of Bharat Petroleum Corporation Ltd. Remains Due; Government In The "Wait & Watch" Mode Say Officials

Finanace Minister Nirmala Sitharaman is in "wait and watch" mode regarding privatisation of the leading government oil & gas company, Bharat Petroleum Corporation Ltd. (BPCL). The government officials said that after the consortia, that submitted expressions of interest (EoI) developed cold feet.

Purposes behind paddling back could be complex, for example, changing elements of the fossil-fuel market, the abundant resources expected to purchase a blue chip like BPCL and changes in the sythesis of different consortia that had at first shown revenue, the authorities clarified.

Five of the six EoIs got have been removed and just one from Vedanta ltd. remains, they added.

In an explanation Vedanta said that its bid for BPCL is at EoI stage and the organisation might embrace the management of the business assuming the transactions culminates. The business will be gained through a proper benefit sharing course of action or on an administration expense model, the proclamation added. A particular asset, with an essential investor will be set up to bankroll the likely venture, without utilising Vedanta's monetary record, it said.

The officials said thay the government is holding on to the current process and the transaction advisor will attempt to persuade potential buyers to return to the table.

The report noted that the Center at this stage has not called for new EoIs, despite the fact that the choice exists.

Till the matter is settled, BPCL's privatisation will stay at the due persistence stage with expected purchasers yet to attempt physical visits of the fuel refiner and access the virtual data room, the report added.