Vedanta, two global funds among BPCL suitors
NEW DELHI: Vedanta, two global funds among BPCL suitors – To be among the suitors for state-owned Bharat Petroleum Corporation (BPCL), Anil Agarwal’s Vedanta Group and two overseas funds are said to be the best suiters which the govt is seeking to privatize.
As per the govt, Vedanta is among the “multiple suitors” for the oil marketing company weren’t immediately known transaction advisor Deloitte have thus far not disclosed names of the entities that have evinced interest in submitting an expression of interest ended Monday evening as many top oil companies have stayed out of the race.
As recently expanded into energy through the acquisition of Cairn, Vedanta had focused on the metals space, a serious contributor to India’s domestic crude production. Domestic production, however, accounts for just around a fifth of the whole oil consumption within the country.
BPCL will provide a much-needed boost to the group’s energy thrust if its plans materialize, through its four refineries in Kochi, Mumbai, and Bina, although the Numaligarh facility in Assam is going to be hived off. Currently, BPCL accounts for 15% of India’s refining capacity on the brink of 250 million tonnes. The general public sector undertaking (PSU) company also owns 15,177 petrol pumps, 6,011 Liquefied Petroleum Gas (LPG) distributorships, & 51 LPG bottling plants. the corporate distributes 21% of petroleum products consumed within the country and owns a fifth of the 250 aviation fuel stations within the country.
In contrast, Cairn’s operations in India are limited.
The govt is keen to shut the BPCL transaction by March because it is hoping to mop up on the brink of Rs 45,350 cr from the sales, which can be the main reason behind its disinvestment target of Rs 1.2 lakh cr for the present fiscal year and garner around Rs 6,100 cr. BPCL also will signal the government’s intent to maneuver ahead with the strategic sales, something that it’s did not do over the last six years, despite the Narendra Modi government’s stated policy. On Tuesday, BPCL shares closed 4.4% lower at Rs 394 on the BSE.
Read more Private Sector News on India Frontline.