BPCL stake sale may not happen this fiscal

The government’s plan to sell its stake in Bharat Petroleum Corporation Ltd may not happen this fiscal, thanks to the adverse impact of coronavirus outbreak on businesses and a record slump in global crude oil prices, according to officials aware of the discussions.

The spread of the virus to more than 210 countries has brought world economy to a standstill, with the International Monetary Fund (IMF) projecting global growth to fall to -3% this year. Over 195,000 people have died of the virus so far.

Added to this is the global slump in crude oil prices which has dealt a blow to valuation of companies.

“BPCL is a good asset. But at a time when the world is under a lock down and businesses have suffered, companies are looking at preserving cash. Acquisitions can wait,” an energy consultant, aware of the discussions, said on the condition of anonymity.

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