1. You Are At:
  2. English News
  3. Business News
  4. Government to sell BPCL in big disinvestment push: 10 takeaways

Government to sell BPCL in big disinvestment push: 10 takeaways

Addressing the media after the Cabinet meeting, Finance Minister Nirmala Sitharaman said that while the Centre will strategically disinvest Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI) and Container Corporation of India (CONCOR), it will sell its entire stake in THDC India Ltd and North Eastern Electric Power Corporation (NEEPCO) to another state-run power major, NTPC.

India TV Business Desk India TV Business Desk
New Delhi Updated on: November 21, 2019 10:37 IST
Latest News Govt to Sell bpcl Disinvestment Push Concor Finance Minister Sitharaman, Addressing the
Image Source : PTI PHOTO

Government to sell BPCL in big disinvestment push

Pushing the pedal on its disinvestment programme, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved strategic disinvestment in five large public sector undertakings (PSU) -- BPCL, CONCOR, SCI, THDC and NEEPCO -- along with a change in management control in these companies. Addressing the media after the Cabinet meeting, Finance Minister Nirmala Sitharaman said that while the Centre will strategically disinvest Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI) and Container Corporation of India (CONCOR), it will sell its entire stake in THDC India Ltd and North Eastern Electric Power Corporation (NEEPCO) to another state-run power major, NTPC.

Here are 10 takeaways from the government decision 

  1. Numaligarh will be carved out from BPCL before its disinvestment and would retain its PSU character. The company can be taken over by other CPSE in the oil and gas sector under consolidation
  2. According to an official statement, the Cabinet decided on the "strategic disinvestment of BPCL's shareholding of 61.65 per cent in NRL along with transfer of management control to a Central Public Sector Enterprise (CPSE) operating in the oil and gas sector
  3. The government may consider two-phased disinvestment for public sector oil refiner and retailer BPCL if the initial strategic sale of the entire 53.29 per cent government stake in the company fails to get requisite response
  4. In terms of CONCOR, the government would disinvest 30.8 per cent, out of the 54.8 per cent equity the government currently holds, and will retain the remaining 24 per cent. The management control in CONCOR will still change hands
  5. Two PSUs under the strategic disinvestment plan, THDC and NEEPCO, will be taken over by another state-run power major NTPC. Official sources said NTPC may offer close to Rs 10,000 crore for picking up the entire stake held by the Centre in the two companies. Though the transaction advisor will come to valuations about the entities later, the portfolio of projects with NEEPCO and THDC make it a fit case to command good value
  6. The government would lower stake below 51 per cent in select PSUs while retaining the management control. The decision to bring down Centre's stake will be taken on a case-to-case basis
  7. Even with government holding falling below 51 per cent, these companies would continue to retain the PSU character and the move will not require any amendments to laws governing the PSUs
  8. From the stake sale in SCI and CONCOR, the government is likely to get over Rs 2,000 crore and Rs 10,500 crore, respectively, at current stock prices of the company
  9. The CCEA has also approved certain measures for the effective implementation of initiatives to revive the construction sector
  10. It also cleared the amendments proposed in the Toll-Operate-Transfer (TOT) model by National Highways Authority of India (NHAI). Public funded National Highway (NH) projects, which are operational and have toll revenue generation history of one year after the Commercial Operations Date (COD), shall be monetised through the TOT Model

Also Read | Government announces big relief to telcos: Here's what we know so far

Also Read | BSNL-MTNL merger may be completed in 24 months: Prasad​

Write a comment

Bigg boss 13