Govt may raise foreign investment limit to aid BPCL sale: Report
India is considering making it easier for foreign investors to acquire control of Bharat Petroleum Corp., according to people familiar with the matter, as the government tries to sell the state firm and bridge a widening budget deficit.
If the cabinet clears the proposal, overseas funds would no longer need government approval to purchase a 100 per cent stake in state-run refiners cleared in-principle for disinvestment, the people said, asking not to be identified as the deliberations are private. The limit will stay 49 per cent for firms not lined up for asset sales.
India needs to find a buyer for its 53 per cent stake in BPCL, one of two major state firms — the other being Air India Ltd. — identified by the government to help shore up its finances following a deadly second wave of coronavirus infections. The government has budgeted $23 billion from divestments in the financial year that started April 1.
A finance ministry spokesperson refused to comment on the matter.
BPCL swung to a record profit of 119.4 billion rupees ($1.6 billion) in the three months ended March 31 from a loss of 13.6 billion rupees the previous year. The numbers were aided by the sale of a unit.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
