Govt to clarify 100% FDI norm applicable to refiner-cum-retailer BPCL

Presently, 49% FDI is permitted beneath computerized route in petroleum refining by PSUs, with none disinvestment or dilution of home fairness within the present PSUs.

The federal government might make clear that 100% overseas direct funding (FDI) restrict via computerized route shall be relevant to refiner-cum-retailer BPCL when it turns into a non-public firm after the federal government sells its 52.98% stake within the firm.

“As much as 100% FDI is allowed in non-public sector in refining, and BPCL is getting privatised by authorities. The Division for Promotion of Trade and Inner Commerce must make clear,” a senior finance ministry official stated.

Extant FDI coverage permits 100% FDI beneath computerized route in gas retailing for personal sector, however limits it to 49% in PSUs in refining enterprise. For the reason that 100% FDI beneath computerized route is already allowed for refining in non-public sector, one other finance ministry official stated no modification to FDI norms is required as BPCL may even turn out to be a non-public firm after disinvestment.

Presently, 49% FDI is permitted beneath computerized route in petroleum refining by PSUs, with none disinvestment or dilution of home fairness within the present PSUs.

“For the reason that Cupboard has already accepted privatisation of BPCL and FDI norms permit 100% overseas funding beneath computerized route in refining in non-public sector, there isn’t any want for any modification in FDI coverage,” the second official stated.

The Centre’s stake in BPCL, which is valued at about Rs 54,200 crore at present market costs, is a key part of its formidable plan to mobilise Rs 1.75 lakh crore in disinvestment receipts in FY22.

With the second wave of Covid pandemic hampering motion of executives of bidders for asset analysis resulting in delay in completion of due diligence, the bidders have been given consolation of extra time and at the moment are anticipated to submit monetary bids for BPCL round September.

In November 2020, a number of bidders together with Vedanta, Apollo International Administration and Suppose Gasoline, confirmed curiosity for BPCL buyout.