'Partial sale of government stake in BPCL may not work'

New Delhi: Selling just a part of the government stake in BPCL when its privatisation bid is revived may not work, a person familiar with the matter said.

The government has been reportedly toying with the idea of selling part of BPCL's stake when it restarts the divestment process as it would lower the funding requirement for the potential acquirer. The government had offered to sell its entire 53% stake in BPCL.

"Partial" or "haphazard" divestment doesn't work, the person said. The experience has shown that the government must sell its entire stake while privatising a company, he said, citing Air India's example.

It was a "sensible decision" to stall the divestment process as there was just one bidder left in the fray and a single bidder always "dictates terms".

The government will look at different divestment formats and undertake fresh consultations before restarting BPCL divestment.