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BPCL Disinvestment: Finance Minister calls upon the industry to partake in the disinvestment process

Post By : News Desk
Post Date : December 23, 2019
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Union Finance Minister Nirmala Sitharaman has invited the industry members to participate in the disinvestment process, reported IANS. This is a major fillip for the disinvestment of the central public sector enterprises (CPSEs) like BPCL, Concor and Shipping Corp.

While addressing Assocham‘s centenary celebrations in New Delhi, Nirmala Sitharaman stressed that the country’s macroeconomic fundamentals are very strong, and by further participation of the industry in such areas, growth is inevitable. She also conveyed that India’s inflation is well under control.

“Disinvestment of CPSEs is happening and some of you may have to come forward to participate in them and offer a bid. You cannot remain quiet. You look at prospects of growing your businesses by picking up some of these companies which are being offered. These are essentially good companies and you must be the first bidders.”

– Nirmala Sitharaman, Minister of Finance

Sitharaman shared that although there has been an impact on the prices of seasonal vegetables like onions, inflation has always remained below 4 per cent.

The Finance Minister stated that there have been times when food inflation reached double digits in 2013-14. Even when onions reached sky-high prices, it did not cross 4 per cent, she said.

“Inflation has been kept under control and even our macroeconomic fundamentals like FDI and forex reserves are very strong,”  she said.

“We will evaluate (for BPCL) if it makes sense where we can supply our oil, we should look at BPCL or any kind of asset that comes. When the EoI (expression of interest) comes, we will definitely look at all our assets”, she shared.

Government is expecting to raise INR 60,000 crore through this disinvestment

At the current share prices, the government’s entire 53 per cent stake in BPCL is poised to be worth Rs 60,000 crore. But there are talks about the government considering to sell off its equity in phases to a strategic partner. There are also chances that it is looking at oil giants like Saudi Aramco to take over BPCL.

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