BPCL disinvestment process moving on well, to conclude sale by September-end: DIPAM Secy

The government is selling its entire 52.98% stake in BPCL in the nation's biggest privatisation till date

Disinvestment process of oil marketing firm BPCL is moving on well and expected to conclude by September-end, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on Thursday.

The government is selling its entire 52.98 per cent stake in BPCL in the nation's biggest privatisation till date.

Vedanta Group and private equity firms Apollo Global and I Squared Capital's Indian unit Think Gas have put in an expression of interest for buying the government's stake.

Speaking at Times Network India Economic Conclave, Pandey said, "It (BPCL disinvestment) is moving on well and we hope to conclude in H1 (of 2021-22)."

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Earlier this month, Bharat Petroleum Corporation Ltd (BPCL) announced exit from Numaligarh refinery in Assam by selling its entire stake to a consortium of Oil India Ltd and Engineers India Ltd for Rs 9,876 crore.

The sale of Numaligarh Refinery Ltd clears the way for privatisation of India's second-largest fuel retailer.

In keeping with the Assam Peace Accord, the government had decided to keep Numaligarh Refinery Ltd (NRL) in the public sector. As part of this, BPCL was to sell its entire 61.65 per cent stake to state-owned firms.

On the national carrier Air India's privatisation, he said the process is on and it should happen in the next financial year.

Internationally, things are subdued in aviation industry due to fresh wave, he said adding that things should get better with vaccines roll-out.

"So, we do hope that the Air India disinvestment will also take place next year," he added.

Asked about the pipeline for privatisation next financial year, he said the companies mentioned in Finance Minister's Budget Speech.

The government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including two public sector banks and one general insurance company, in the next fiscal year beginning April 1.

The amount is lower than the record Rs 2.10 lakh crore which was budgeted to be raised from CPSE disinvestment in the current fiscal year.

For the fiscal year 2021-22, out of the total Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling government stake in public sector banks and financial institutions, and Rs 75,000 crore would come as CPSE disinvestment receipts.

On the opposition to the disinvestment, he said, "If there is a big policy change then different stakeholders such as employees, investors, and taxpayers will have questions and we will need to be convinced... Behind privatisation main objective is the growth of enterprises."

If there is no growth in an enterprise then none of the stakeholders gain and the survival of those organisations is linked to their growth, he said.

"Once this is understood that they will realise that the privatisation will actually be pro-growth, pro-employees and pro-productivity. So, this is a dialogue which we need to carry," he said.