In the first EOI phase, qualified bidders will be asked to make financial bids in the second round. Public sector undertakings are not eligible to participate in privatization
New Delhi (Natural Energy News): India's oil minister Dharmendra Pradhan said on Wednesday that the privatization of state-owned Bharat Petroleum Corporation Limited (BPCL) has received three primary bids.
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Speaking in a webinar organized by Swaraj magazine, Pradhan said that there was a lot of interest in BPCL and the Department of Investment and Public Asset Management (DIPAM) had recently informed the stock market about it.
"I think the three parties have given an expression of their interest to the bidding process," Pradhan said and added, "As I have said before, the government will take its share from some state-owned companies. Is committed to. There is more professionalism that way. "More conflict will appear and we are passionate and excited about that aspect."
The Center has previously said it has received interest (EOI) prices from "several" domestic and international investors for the BP stake sale. Vedanta Group and two US funds have reportedly deposited their EOIs. The government expanded in the wake of the epidemic. The initial EoI deadline in BPCL is four times this year.
In the first EOI phase, qualified bidders will be asked to make financial bids in the second round. Public sector undertakings are not eligible to participate in privatization.
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The Center is expected to fetch around ₹ 45,000 crores from the sale of 53% stake of India's second-largest fuel retailer and is required to meet the record for 2.1 trillion that the Finance Minister has budgeted for 2020-21 Disinvestment is determined by income. India has so far managed around Rs 6,100 crore in disinvestment income.
“Disinvestment agenda continues. Finance Minister Nirmala Sitharaman said that a conference organized this month by the Confederation of Indian Industry lobby group also said that we will grow more in achieving privatization.
The qualifying bidder will not only have a controlling stake in BPCL but will also have a 25.77% market share in India's fuel retail sector as well as 15.3% of India's total refining capacity. BPCL operates four refineries in Assam with a combined capacity of 38.3 million tonnes per annum at Kochi, Bina and Numaligarh in Assam.
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India is the world's third-largest crude oil buyer and a major refining hub in Asia, with an installed capacity of over 249.36 million tonnes per annum (mtpa) through 23 refineries. Major Indian refiners include IOC, Bharat Petroleum Corp Ltd, Hindustan Petroleum Corp Ltd, Naira Energy Ltd (formerly Essar Oil) and Reliance Industries Ltd. Prime Minister Narendra Modi has said that India is planning to increase its refining capacity by about 250 tonnes. 400 million tonnes per year (mtpa) by 2025.
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