The Central government proposes to further sugarcoat the BPCL strategic sale deal for the interested investors by giving few more clarifications through a new set of frequently asked questions (FAQ).
Sources said that the Department of Promotion of Investment and Internal Trade (DPIIT) may soon issue a clarification that the BPCL under new private sector owners would be free to bring in foreign direct investments (FDIs) to the tune of the entire 100 per cent equity of the company without conditions.
Also, after privatisation, BPCL would be free to exercise its right to stay or come out of the joint venture company that plans to build the world’s largest 60 million-tonne integrated refinery-cum-petrochemicals complex in Maharashtra’s Ratnagiri district at an estimated cost of Rs 3 lakh crore.
Moreover, the government is also looking to allow BPCL to sell its stake in Petronet LNG and Indraprastha Gas Ltd, where the oil refiner is one of the promoters, before its own strategic sale.
This will prevent new owners of BPCL from making mandatory open offers to the shareholders of these companies, an exercise that could increase the cost for the new investors by up to Rs 20,000 crore.