Pradhan hints IOC, other PSUs may not bid for stake in BPCL

NEW DELHI: Oil Minister Dharmendra Pradhan on Thursday hinted that public sector firms such as Indian Oil Corporation (IOC) may not be allowed to bid for buying government stake in Bharat Petroleum Corporation Ltd (BPCL), for which a buyer may have to shell out as much as Rs 90,000 crore.

The Cabinet Committee on Economic Affairs had on Wednesday decided to sell the government’s entire stake in the country’s second-largest state refiner BPCL and India’s largest shipping company Shipping Corporation of India (SCI). It also approved privatisation of Container Corporation of India while also giving nod to paring stake below 51 per cent in select public sector undertakings but without losing control.

“Since 2014, we have a clear vision that the government has no business to be in business,” Pradhan told reporters here. “We have examples of 2-3 sectors such as telecom and aviation where ushering in private participation has led to customers benefiting from price cuts, efficiency, and better service. And yesterday (on Wednesday), several reformist decisions were taken.” BPCL will give buyers ready access to 14 per cent of India’s oil refining capacity and about onefourth of the fuel marketing infrastructure in the world’s fastest-growing energy market. It, however, will be sold after carving out Numaligarh Refinery from its portfolio and given to a pubic sector unit. “Numaligarh refinery was set up as per Assam Accord and it will remain a public sector unit. Assam Chief Minister had requested Prime Minister (Narendra Modi) to retain public sector character of Numaligarh Refinery and that has been accepted,” he said. Pradhan, however, did not say if IOC or Oil India Ltd, which already has a stake in the refinery and also supplies crude oil to it, will take over the unit.

“The details have to be worked out,” he said. “Finance Minister (Nirmala Sitharaman) has stated that the privatisation of BPCL will happen this fiscal and we hope to adhere to the timeline.”

The Cabinet Committee on Economic Affairs had on Wednesday decided to sell the government’s entire stake in the country’s second-largest state refiner BPCL and 4 other PSUs