Central Government withdraws BPCL privatization public field oil marketing company
By Lokmat English Desk | Published: May 27, 2022 05:56 PM2022-05-27T17:56:04+5:302022-05-27T17:56:04+5:30
Next 
Over the last two years, large-scale privatization and disinvestment of state-owned companies and banks has been taking place. While presenting the budget, the Modi government at the center has clarified its position in this regard.
The decision is said to have been taken by the central government due to challenges on other fronts, including Corona. The central government intends to raise crores of rupees through this channel. However, Bharat Petroleum Corporation of India is now a leading petroleum company.
The central government had planned to sell its entire 52.98 percent stake in BPCL and the tender process was launched in March 2020 for investors.
In this process, at least three tenders were received till November 2020. But when others withdrew their bids, only one bid remained.
However, the government announced that it was withdrawing from the privatization process by selling its entire 52.98 percent stake in BPCL. The government was forced to take such a decision as no buyer was likely to come forward due to the unfavorable environment in the global energy market
One wave after another of the Corona epidemic, and then the geopolitical situation in Europe now destabilized by the war, has adversely affected the world's energy markets, especially the oil and gas sector.
The Department of Public Property Management (DPM) had to announce that it was halting the privatization process as only one contestant remained in the fray. In view of this, the Ministerial Group on Export Issues has decided to conduct the current tender process for the strategic issuance of BPCL.
Letters of intent received from eligible bidders will be revoked, Deepam clarified. The department also said that the decision on resumption of the company's policy issuance process would be taken in due course based on a review of the situation.
Shares of BPCL fell 0.54 per cent to close at Rs 324.25 on the BSE on Thursday. At this rate, BPCL had a market capitalization of Rs 70,359 crore.