Insta
Govt Mulls FDI Policy Tweak To Facilitate BPCL Privatisation By Allowing Overseas Investors To Pick A Majority Stake
Prime Minister Narendra Modi with Finance Minister Nirmala Sitharaman.
In a bid to ease up the path for privatisation of the state-owned Bharat Petroleum Corporation Limited (BPCL), the government is said to be considering a tweak in the foreign direct investment (FDI) policy to allow overseas investors to pick up a majority stake in the oil refining major, reports Economic Times.
The proposal for FDI Tweak is presently said to be under discussion among the Department of Investment and Public Asset Management (DIPAM), Department for Promotion of Industry and Internal Trade (DPIIIT) and the Department of Economic Affairs (DEA).
At present, only 49 per cent of FDI is permitted through the automatic route in petroleum refining by state-owned enterprises. Thus, as per the present norms, a foreign player would not be able to buy more than a 49 per cent stake in BPCL. In this light, DIPAM is said to have suggested to amend the policy and allow 100 per cent FDI in the Central PSEs.
The government has received three expressions of interest (EOIs) for its entire 52.98 per cent stake in BPCL. While one of the interested parties is metals-to-mining tycoon Anil Agarwal led Vedanta, the other two parties are both said to be global funds including Apollo Global Management.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest
