Mega disinvestment: BPCL, SCI, CONCOR to be privatised

Bharat Petroleum BPCL

She said a "carve out" has been made of NRL in Assam that shall not be disinvested and NRL will be moved out of BPCL before the disinvestment and acquired by another PSU.

The Cabinet Committee on Economic Affairs (CCEA) approved sale of government's entire 53.29% stake along with transfer of management control in the country's second biggest state-owned refiner Bharat Petroleum Corp (BPCL) after removing Numaligarh refinery from its fold, Finance Minister Nirmala Sitharaman told reporters in New Delhi.

The government plans to sell its 53.29% stake along with management control in the oil marketing and refining firm. This is called selling the country. The management control will continue to be retained with the government after considering equity held by other state-owned companies in the divested firm.

The government has tried this model earlier during the strategic disinvestment of metal and mining PSUs - Hindustan Zinc Ltd and BALCO.

The government proposes to raise Rs 1.05 lakh crore from disinvestment in the current financial year.

PM Modi's government has set a fiscal deficit target of 3.3 per cent of gross domestic product (GDP) for the current year, but economists and government sources say this is likely to slip to around 3.8 per cent. The management control in CONCOR will still change hands, Pandey said. The government said the resources unlocked by the strategic disinvestment of these state run companies would be used to finance the social sector and developmental programmes of the Centre benefiting the public. Such a scenario would impact BPCL's earnings per share by Rs 6. Though the transaction advisor will come to valuations about the entities later, the portfolio of projects with NEEPCO and THDC make it a fit case to command good value. The Uttar Pradesh government holds the balance 25% stake in THDC India. The decision to bring down Centre's stake will be taken on a case-to-case basis, she said.

While the government will retain the remaining 24 per cent stake, it will cede management control to the buyer. It also approved the sale of an entire 63.75 per cent government holding in Shipping Corp of India (SCI) and a 30.8 per cent stake in Container Corp of India (Concor).

The government said the move is meant to widen the bandwidth of disinvestment window in select CPSEs.



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