Exclusive: CGD to meet on Aug 21 on BPCL strategic disinvestment; key things to know

Core group of secretaries on disinvestment or CGD will meet on August 21 to discuss investor issues for the bidding of oil major Bharat Petroleum Corporation Ltd (BPCL), government sources, who did not wish to be named, revealed exclusively to Zee Business.

"Investors have some queries regarding strategic disinvestment of BPCL. Foreign companies are asking if they can bid through consortium or special purpose vehicle," said the source.

The government has plans to complete strategic disinvestment of BPCL in the current financial year. Recently it had extended the deadline for expression of interest or EoI till September 30 due to Covid 19 pandemic. 

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"Corona pandemic is one of the reasons for extending deadline of EoI for BPCL. Other reasons for the deadline extension are foreign companies need more time to do their calculation before bidding for the oil major. The strategic disinvestment of BPCL will be completed by the current financial year," another source told.

The government holds 52.98% shares in BPCL. It is proposing to divest its complete shareholding along with the transfer control to a private player. However, its 61.65% stake in Numaligarh Refinery Ltd will be sold to another state-owned oil and gas company.
  
Privatisation of BPCL holds importance in order to achieve the disinvestment target of Rs 2.1 lakh crore for FY 21. Besides BPCL, the government had also extended the deadline of bidding of Air India due to corona pandemic which has adversely affected economies globally. It's bidding deadline is August 31. 

On BSE, shares of BPCL ended marginally higher at Rs 403.80 per share, up 0.40% on Wednesday from the previous close.