Anil Agarwal's Vedanta Group and two foreign funds are said to be among the litigants for the state-owned Bharat Petroleum Corporation (BPCL), which the government wants to privatize. Government sources told TOI that Vedanta is doing "several suits" for the oil marketing company.
New Delhi (Natural Energy News): Anil Agarwal's Vedanta Group and two foreign funds are said to be suicidal for the state-owned Bharat Petroleum Corporation (BPCL), which the government wants to privatize.
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Government sources told TOI that Vedanta is a "multiple suitors" for the oil marketing company. The titles of the two funds were not instantly recognized. Deloitte, the government and transaction advisor, has not yet revealed the names of the entities that have exempted interest. The deadline to submit an expression of interest expired on Monday evening. Many top oil companies have dropped out of the race.
Vedanta, which focused on the location of the metal, expanded into energy through the acquisition of Cairn, a major contributor to India's domestic crude oil production. However, domestic production accounts for only one-fifth of oil consumption in the entire country.
If its plans are implemented, BPCL will greatly boost the development of the group's energy through its four refineries at Mumbai, Kochi and Bina, though the Numaligarh facility in Assam will be closed. Currently, BPCL has about 15% of India's refining capacity of 250 million tonnes. The public sector company has 15,177 petrol pumps, 6,011 LPG (liquefied petroleum gas) distribution and 51 LPG bottling plants. The corporation allocates 21% of petroleum products consumed in the nation and acquires a fifth of the 250 flight fuel stations in the nation.
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In contrast, Cairn's operations in India are limited.
The government is keen to close the BPCL transaction by March as it is expecting a moped of around Rs 45,350 crore from the sale, which will be a major part of its disinvestment target of Rs 1.2 lakh crore for the current financial year. Till now, it has been successful in doing business of around Rs 6,100 crore. Despite the announced policy of the Narendra Modi government, BPCL will indicate the intention of the government with strategic sales, which it has failed to do in the last six years. On Tuesday, BPCL shares closed at Rs 394, down 4.4% on the BSE.
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