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Minister of State for Finance Bhagwat Kishanrao Karad on Monday said the Central Government will decide on re-initiating the process of Bharat Petroleum Corporation Ltd (BPCL) strategic sale based on a review of the situation in due course.
In a written reply to the Lok Sabha, Karad said the coronavirus pandemic, energy transition issues and geo-political conditions affected several industries globally, particularly the oil and gas industry.
Informing the Parliament, he said, "Government of India has decided to call off the present EoI process for strategic disinvestment of BPCL. The decision on re-initiation of the strategic disinvestment process of BPCL depends on the review of the situation in due course."
Back in May, the government withdrew its offer to sell its entire 52.98% stake in BPCL, stating 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 Centre had planned to sell its entire 52.98% stake in BPCL and invited Expressions of Interest (EoIs) from bidders in March 2020. As many as three bids came in by November 2020.
But, 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 majority of Qualified Interested Parties (QIPs) have expressed their inability to continue in the current process of disinvestment of BPCL," Karad stated.
Billionaire Anil Agarwal's Vedanta group, US venture funds Apollo Global Management Inc and I Squared Capital Advisors had expressed interest in buying the government’s stake in BPCL.
But the two funds withdrew after failing to rope in global investors amid waning interest in fossil fuels.
The government had not invited financial bids.
Meanwhile, BPCL recently reported a net loss of ₹6,291 crore in the first quarter of current fiscal on holding fuel prices despite rise in cost.
Net loss of ₹6,290.8 crore in April-June compared with ₹3,192.58 crore in the same period a year back, the company said in a statement.
Revenue from operations rose to ₹1.38 lakh crore from ₹89,688.98 crore in April-June 2021.