The sale process of Bharat Petroleum Corporation Limited (BPCL), the second largest petroleum company in India, is likely to be completed by March next year. The government has asked to report the valuation of assets of the company within 50 days, setting the time limit for privatization of BPCL. For information, let us know that the assets of the company will be evaluated by the 'asset valuer'. When this process is complete, the government will invite bids to buy the company's stake.
At present, the Central Cabinet has approved the largest ever disinvestment in government companies to get rid of economic slowdown and increase revenue. The government has decided to reduce its stake in five blue chip companies, Bharat Petroleum Corporation Limited, Shipping Corporation of India and Onland Cargo Mover Concor, etc.
The cabinet has decided to sell the government's 63.75 per cent stake in Shipping Corporation of India. The railway company will also be sold to Concor. The government holds 54.8% in it. Government stake in select companies will be less than 51%. The government will additionally reduce its stake in select public sector undertakings such as Indian Oil Corporation to less than 51 per cent. For now, the government will have managerial control over them. The government currently holds 51.5 per cent stake in Indian Oil. With this, 25.9 per cent stake is held by Life Insurance Corporation of India, ONGC and Oil India Limited (OIL). The government has decided to sell 26.4 per cent stake for Rs 33000 crore.
The disinvestment process can be completed in two stages - Letters of interest from potential buyers will be invited in the first phase. In the second phase, they will be asked to submit their bids.
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