On July 22, sources told CNBC Awaaz that the Union Cabinet is expected to approve 100 percent foreign direct investment (FDI) in Bharat Petroleum Corporation (BPCL).
The action will serve as a “booster for the divestment process,” according to the newspaper.
Private refineries, for example, are allowed full FDI, whereas PSUs are subject to a 49-51 ownership structure, with the government owning the majority interest. The government, in particular, is attempting to fully abandon the state refinery.
According to CNBC Awaaz, approval for 100 percent FDI in BPCL will necessitate a few adjustments in the norms or exceptions.
Allowing FDI into the state-owned enterprise will increase the number of bidders and speed up the privatization process. As part of its asset monetization program, the Centre has chosen to sell its whole stake in BPCL to a private entity.
The winning private bidder, whether international or local, will end up owning not only BPCL’s refining and marketing operations but also all of the company’s exploration assets.
The administration is doing everything it can to increase the chances of meeting its divestiture goals this year. According to reports, the Centre may change the benefits of Air India personnel in order to attract bids.
