Modi Government Approves India’s Mega Privatisation Drive: Big Ticket Strategic Sale Of BPCL, CONCOR, SCI 

Swarajya Staff

Nov 21, 2019, 09:19 AM | Updated 09:19 AM IST

Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.
Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.

In the biggest privatisation drive ever, the cabinet committee on economic affairs (CCEA) on Wednesday (Nov 20) approved the privatization of blue-chip oil firm Bharat Petroleum Corp. Ltd (BPCL) , shipping firm Shipping Corp. of India (SCI) and onland cargo mover Concor,. Union Cabinet on Wednesday (Nov 20).

The Cabinet Committee on Economic Affairs (CCEA) approved sale of government's entire 53.29 per cent stake along with complete transfer of management control in the country's second biggest state owned refiner Bharat Petroleum Corp Ltd (BPCL) after carving out Numaligarh refinery from its fold, Finance Minister Nirmala Sitharaman informed.

"Numaligarh will be carved out from BPCL before its disinvestment and would retain its PSU character. The company can be taken over by other CPSE in the oil and gas sector under consolidation," she said.

Saudi Aramco, French major Total, BP Plc, ExxonMobil, Reliance Industries (RIL) are among the frontrunners for acquiring BPCL.

In terms of CONCOR, the government would disinvest 30.8 per cent, out of the 54.8 per cent equity the government currently holds, and will retain the remaining 24 per cent. The management control in CONCOR will still change hands, Pandey said.

As part of a consolidation exercise of the state run hydropower firms, government wll sell its holdings in THDC India Ltd (THDC) and North Eastern Electric Power Corp. Ltd (Neepco). THDC and NEEPCO is ikely to be taken over by another state-run power major NTPC.

Official sources said NTPC may offer close to Rs 10,000 crore for picking up the entire stake held by the Centre in the two companies. 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 Centre holds 100 per cent stake in NEEPCO that operates close to 1,500 MW of power plants in the northeastern region, while it has 75 per cent holding in THDC. The Uttar Pradesh government holds the balance 25 per cent stake in THDC India.

(With Inputs From IANS)

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