Centre withdraws offer to sell its 53% stake in BPCL

It said that the majority of bidders expressed an inability to participate in the privatisation

The Centre Thursday put on hold the disinvestment of state-run refiner BPCL after a majority of bidders expressed inability to participate in the current privatisation process due to prevailing conditions in the global energy market.

The government had planned to sell its entire 52.98 per cent in the company and invited expressions of interest (EoIs) from bidders in March 2020. The EoI submission date was extended multiple times to address the constraints faced by the potential bidders.

Sources said the government will come up with a new strategy for BPCL stake sale through which it expects to garner over Rs 45,000 crore.

"The multiple Covid-19 waves and geo-political conditions affected multiple industries globally, particularly oil and gas industry," Department of investment and public asset management said in a notification. In view of this, the Group of Ministers on Disinvestment has decided to call off the present EoI process for the strategic disinvestment of BPCL and the EoIs received from QIPs shall stand cancelled," DIPAM said.

Officials said the government may start the process of disinvestment of BPCL afresh considering the global condition and oil prices.