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BPCL disinvestment on track; bidders have not abandoned the deal: Source

A source said that the BPCL disinvestment is on track for now as bidders have not abandoned the deal in the backdrop of a historic decline in global crude prices

BPCL disinvestment on track; bidders have not abandoned the deal
BPCL disinvestment on track; bidders have not abandoned the deal
  • Bidders have only sought more time which has been given to them, said a source

  • The government had extended the deadline for submission of EoI for the sale of BPCL for a second time by more than a month in March

New Delhi: The crash in global oil prices and the Coronavirus lockdown may have roiled the market, but bidders have not abandoned the deal that the government is offering with respect to state-run BPCL and that means BPCL disinvestment is on track for now, said a source who spoke to PSU Watch on the condition of anonymity.

While remarking that it will be difficult to say with certainty whether BPCL disinvestment will take place this year or not because of the uncertainty that plagues the market and the economy in the wake of the COVID situation, the source said that the plan is on track for now.

BPCL disinvestment: Bidders have sought more time

The source said, “For now, everything is on track. Bidders could have abandoned the deal altogether because their businesses are under strain right now but that hasn’t happened. They are around. They have only sought more time which has been given to them. It is impossible to say anything with certainty because the picture will be clearer as we go ahead, depending on what bidders say. However, for now, BPCL disinvestment is on track.”

Govt extended the deadline for EoI submission in March

In a notification released on March 31, the government extended the deadline for submission of EoI (Expression of Interest) for the sale of BPCL for a second time by more than a month to June 13. While the deadline for the submission of EoIs for BPCL was extended from May 2 to June 13, the deadline for the submission of queries on PIM (preliminary information memorandum) was extended from April 4 earlier to May 16.

Process of carving out NRL from BPCL on: Source

Another source who spoke to PSU Watch said that the process to carve out NRL (Numaligarh Refinery Ltd) from BPCL is underway. According to the announcement made by the government in November 2019, only BPCL will be sold off to a strategic player, NRL will continue to be a public entity with one of the state-run companies picking up the government’s stake in the oil PSU.