Govt extends deadline for submission of EoI for BPCL

New Delhi: In the wake of the Coronavirus pandemic, the government has extended the deadline for submission of EoI (Expression of Interest) for the sale of BPCL (Bharat Petroleum Corporation) for a second time on Tuesday. According to a notification posted by DIPAM (Department of Investment and Public Asset Management), the deadline for EoI submission has been extended by more than a month to June 13. The news comes as the stock markets traverse a volatile period with several countries across the globe imposing a lockdown to contain the spread of Coronavirus and global crude oil prices cracking on the back of a massive decline in demand.

DIPAM says bidders requested extension in BPCL EoI submission deadline

While the deadline for the submission of EoIs for BPCL has been extended from May 2 to June 13, the deadline for submission of queries on PIM (preliminary information memorandum) has been extended from April 4 earlier to May 16. DIPAM sources have said that bidders from across the globe have shown interest in picking up a stake in BPCL. "The above changes are in view of the requests received from the Interested Bidders (IBs) and the prevailing situation arising out of COVID-19. Further changes with respect to the Important Dates, if any, will be communicated to the Interested Bidders subsequently," DIPAM said in a notification.

The backdrop

The news comes as the government has once again missed the revised disinvestment target of Rs 65,000 crore in FY2019-20 because of the Coronavirus pandemic. Consequently, it is expected that the minority stake sales planned by the government for FY2019-20 will now be pushed to the next fiscal. For FY2020-21, the government is looking to raise Rs 2.1 lakh crore through disinvestment and a major chunk of this amount will come from the sale of BPCL, Air India and the LIC IPO.