Cabinet nods 100% FDI in PSU refiners to aid BPCL privatisation; Stock nears the day's high

100% FDI in Indian PSU refiners is said to expand the scope for FDI in privatisation especially of BPCL.

Jul 23, 2021 01:07 IST India Infoline News Service

BPCL
State-owned Bharat Petroleum Corporation Limited (BPCL) was trading broadly in the green on Friday after the Union Cabinet gave its green signal for allowing 100% foreign direct investment (FDI) in public sector refiners. This is said to expand the scope for FDI in privatisation especially of BPCL.

At around 1.45 pm, BPCL was trading at Rs462 per piece up by 0.3% on Sensex. The stock was near the day's high of Rs465.8 per piece that was recorded earlier today.

A government official told Business Standard that FDI up to 100 per cent will be allowed under the automatic route in cases where a public sector undertaking has received in-principle approval for strategic divestment (in the oil and gas sector).

In the Union Budget for FY22, Finance Minister Nirmala Sitharaman said despite Covid-19, the Government kept working towards strategic disinvestment. FM announced an estimated Rs1.75 lakh cr as receipts from disinvestment in BE 2021-22.

She has said that several transactions that also included BPCL along with Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others would be completed in 2021-22.

The 100% FDI will enable the Centre to offload about 52.98% stake in BPCL to a foreign buyer. Furthermore, the latest move will also open the gates for FDIs in other state-owned companies. 

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