INSUBCONTINENT EXCLUSIVE:
Government has moved a cabinet note to look for views on foreign financial investment in state-owned oil companiesThe Commerce and Industry
Ministry has drifted a draft cabinet note seeking inter-ministerial views on a proposal to allow as much as 100 percent foreign investment
under automated route in oil and gas public sector undertakings (PSUs), which have an 'in-principle' approval for disinvestment, sources
said.The move, if authorized by the union cabinet, would help with privatisation of India's 2nd most significant oil refiner Bharat
Petroleum Corp Ltd (BPCL)
The Government is privatising BPCL and is offering its whole 52.98 per cent stake in the company.Sources said that according to the draft
note, a brand-new stipulation would be included the FDI policy under the petroleum and gas sector.According to the proposition, foreign
investment as much as 100 percent under the automated path would be allowed in cases where an 'in-principle' approval for disinvestment of a
PSU has been granted by the government.For BPCL privatisation, mining-to-oil conglomerate Vedanta had put in an expression of interest (EoI)
for purchasing the federal government's 52.98 per cent stake in the PSU
The other 2 bidders are said to be global funds, one of them being Apollo Global Management.After collecting the views, the commerce and
market ministry would seek approval of the union cabinet on the proposal.At present, just 49 per cent FDI is permitted through automatic
route in petroleum refining by the public sector endeavors (PSU), with no disinvestment or dilution of domestic equity in the existing PSUs.
