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Govt says EoI doc for BPCL sale will be out in ‘few days’

The word from the horse’s mouth on the sale of BPCL is that the govt is going to release the document to invite EoI within few days
New Delhi: The word from the horse’s mouth on the strategic sale of BPCL is that the government is going to release the document to invite EoI (Expression of Interest) from bidders within few days. While noting that the roadshow for the sale of BPCL got a good response, the Secretary of Department of Investment and Public Asset Management (DIPAM), Tuhin Kanta Pandey, has said the process to engage investors will begin in a few days. “We have got quite a good response (BPCL roadshow). We will come out with EoI very soon and then investors can engage with us through the formal process. The BPCL EoI will be issued within few days,” the DIPAM Secretary said.

The BPCL sale

Even though the government wanted to conclude the sale of the oil marketing company in this fiscal year itself, it does not look possible now. The proceeds from the BPCL sale will accrue to the government only in the next financial year — FY2020-21. The Cabinet had in November 2019 given in-principle approval to the strategic sale of BPCL. The government currently holds 53.29 percent in the state-run company. The investor roadshows for BPCL were conducted in the US, London and Dubai in December 2019.

Govt revises disinvestment target

Now that the government is set to miss the budgeted disinvestment target of Rs 1.05 lakh crore, the revised estimate (RE) has pegged the disinvestment target at Rs 65,000 crore. Of this, the government has mopped up Rs 35,000 crore from disinvestment, including from two tranches of CPSE ETF, so far. “We have Rs 35,000 crore. Rest of it we will do strategic disinvestment, then we have OFS, IPO, buyback. All put together we will have RE target through,” Pandey said. He added that the government plans to come out with an initial public offer (IPO) of IRFC and complete the strategic sale of THDCIL and NEEPCO in the current fiscal. For the next fiscal year, the DIPAM has been asked to meet a target of Rs 1.20 lakh crore through CPSE stake sale. Another Rs 90,000 crore is expected to come through the sale of government equity in banks and financial institutions.