New Delhi: The commerce and trade ministry has floated a draft cupboard notice in search of inter-ministerial views on a proposal to permit as much as 100 per cent overseas funding beneath automated route in oil and gasoline PSUs, which have an ‘in-principle’ approval for disinvestment, sources stated.
The transfer, if authorized by the union cupboard, would facilitate privatisation of India’s second largest oil refiner Bharat Petroleum Corp Ltd (BPCL).
The federal government is privatising BPCL and is promoting its whole 52.98 per cent stake within the firm.
Sources stated that as per the draft notice, a brand new clause can be added within the FDI coverage beneath the petroleum and pure gasoline sector.
Based on the proposal, overseas funding as much as 100 per cent beneath the automated route can be allowed in instances the place an ‘in-principle’ approval for disinvestment of a PSU has been granted by the federal government.
For BPCL privatisation, mining-to-oil conglomerate Vedanta had put in an expression of curiosity (EoI) for getting the federal government’s 52.98 per cent stake within the PSU. The opposite two bidders are stated to be world funds, one among them being Apollo World Administration.
After collating the views, the commerce and trade ministry would search approval of the union cupboard on the proposal.
At current, solely 49 per cent FDI is permitted by means of automated route in petroleum refining by the general public sector undertakings (PSU), with none disinvestment or dilution of home fairness within the present PSUs.
This story has been printed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.
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