New Delhi: After most bidders expressed inability to participate in the strategic divestment process in state-owned Bharat Petroleum Corp Ltd, the government formally called it off on Thursday. "The majority of QIPs (qualified interested parties) have stated their unwillingness to continue in the current process of disinvestment of BPCL due to prevailing conditions in the global energy market," the finance ministry said.
Multiple waves of Covid, as well as geopolitical events, impacted multiple industries around the world, particularly the oil and gas industry, according to the ministry. On the basis of an assessment of the circumstances, the government would make a decision on resuming the strategic disinvestment process of BPCL in due course, it said. However, the privatisation was halted after two bidders dropped out for issues such as fuel pricing clarity, leaving only one bidder in the running.
Multiple expressions of interest were received in response to the invitation, according to the Department of Investment and Public Asset Management (DIPAM). Qualified Interested Parties had initiated due diligence of the company.