BPCL privatisation: Government to get fresh legal opinion

It may still be a long road ahead for privatisation of public sector oil refiner Bharat Petroleum Corporation Ltd (BPCL). The possibility of legal challenge over any plan to sell the government stake in the oil PSU has pushed executives and government officials to seek fresh legal opinion on the proposed disinvestment move.

"BPCL and HPCL were acquired through an Act of Parliament. In these two cases, the Supreme Court also gave an order restraining the government from selling its equity without Parliamentary approval. After this, several legislations were repealed by the government through the 2016 Repeal Act. We need to see what the Repeal Act says. As the narration becomes clear and legal people check whether Parliamentary approval is needed or not needed, the privatisation of BPCL can go through," said a top executive of one of OMCs.

There is caution in going ahead with the privatisation of BPCL as in the past, especially in 2003, a similar proposal on disinvestment went through serious legal challenges that ultimately resulted in the Supreme Court axing the plan and asking the government to sell shares only after Parliament's nod.

"As of today, I don't think the full details are available on the modalities and the methodologies which are going to be followed. Based on that only, something can be said otherwise it will be premature," another senior executive of an OMC said.