BPCL EoI to be out on March 7, say sources

New Delhi: The EoI (Expression of Interest) document seeking bids for the privatisation of BPCL could be out on March 7, official sources in the know of the matter have told PSU Watch on Friday. The EoI document was earlier supposed to be out by the end of January, however, it has been stuck at the Alternative Mechanism-level — the last hurdle on the way to being released.

'BPCL EoI would 8 weeks to bidders to submit bids'

According to sources in the Ministry of Petroleum and Natural Gas, the government is expected to give bidders eight weeks to submit bids. And the government is likely to allow both domestic and global companies to buy stake in the state-run fuel retailer. Separately, sources in DIPAM (Department of Investment and Public Asset Management) said that BPCL has garnered significant interest from both domestic and international players during roadshows.

The backdrop

The government announced the decision to privatise BPCL in November 2019. It is looking to raise a big chunk of its disinvestment target for FY2020-21 by offloading a 53.29 percent stake in the state-run fuel retailer. The Economic Survey 2019-20 had said that the government's decision to divest the state-run company had resulted in an increase of Rs 33,000 crore in the value of shareholders' equity in the company as compared to HPCL.

The privatisation move has been met with fierce opposition from trade unions at BPCL who have claimed that it is like killing the goose that lays golden eggs. An apex body representing officers across Maharatna PSUs in India had pegged the valuation of BPCL at over Rs 9 lakh.

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