Centre sets June deadline for completing BPCL sale

VEDANTA AND TWO GLOBAL FUNDS HAVE SUBMITTED BID FOR THE OIL MARKETING COMPANY

The government is targeting to conclude the strategic sale of BPCL in the June quarter, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on Thursday.

"I think we are targeting the first quarter (of 2021-22 fiscal). The engagement is intense now, it is at the due diligence stage. Our process is of value maximisation, and we have to take all precautions to see the value is maximised," Pandey said at an event organised by Aditya Birla Sun Life Mutual Fund.

The government has received three preliminary bids for buying of controlling stake in India's second-largest fuel retailer Bharat Petroleum Corp Ltd (BPCL). Mining-to-oil conglomerate Vedanta had in November confirmed putting in an expression of interest (EoI) for buying the government's 52.98 per cent stake in BPCL. The other two bidders are said to be global funds, one of them being Apollo

Global Management.

Pandey said privatisation of public sector units is a difficult task. However, it will be achieved when private sector shows interest in brownfield acquisitions.

"As private sector interest revives through the slew of measures that the government has taken in terms of economy, the stimulus, the capex, we expect them to come and make disinvestment offerings one of the important aspects of their capital formation strategy which includes the brownfield assets which could be taken to new heights," he said.