Friday, September 30, 2022

Strategic sale of BPCL will be adverse in long-term, warn oil PSU officers

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Mumbai: An apex federation representing officers from Maharatna PSU companies opposed the planned strategic sale of profit-making BPCL (Bharat Petroleum Corporation Ltd) at a press conference on Saturday. The Confederation of Maharatna Officers Association (COMCO) and the Federation of Oil PSU Officers (FOPO) warned the government that it may bring revenue for the government but its long-term impact will be adverse. The statement comes just days ahead of an all-India strike call by trade unions against the strategic sale of profit-making BPCL. The government had announced in November 2019 that it plans to sell its majority stake in BPCL to a strategic investor.

‘Strategic sale of BPCL will result in loss’

The COMCO and FOPO said that selling off BPCL will result in a loss, because it is valued at 9.75 lakh crore, while the government ownership is 53.29 percent for which it will be getting a maximum of Rs 7,50,00 crore. “BPCL is the most efficient profit-making company of the nation, which has been giving Rs 17,000 crore annually since last five years. We are requesting the government to review the decision of disinvestment of BPCL,” said Amit Kumar, president of the Central Working Committee of the Association of Scientific and Technical Officers of ONGC. He added that the disinvestment will be a short-term gain but a long-term loss. He added that if the government wants, it can privatise or divest its stake in some other public sector companies whose performance is poor.

‘Privatisation of BPCL poses threat to India’s security’

“Energy sector is considered strategically important, and privatisation of a public sector company in this sector is a threat to the country’s security,” said Anil Medhe of BPCL Officers’ Association. FOPO convener Mukul Kumar said that BPCL is the most professionally-run company among HPCL, IOC, and its employees are “surprised” by the government’s decision.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)

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