Bharat Petroleum Corporation Limited. (BPCL) may go into the hands of a foreign company. In fact, the central government has approved the increase of the Foreign Investment Limit (FDI) for state-owned refineries selected for privatization. With this move, foreign companies will also be able to buy BPCL easily. Let us say that two of the three companies interested in buying the government’s 52.98% stake in BPCL are foreign companies. The claim of these two foreign companies is strong in the purchase of BPCL.
Current FDI limit: So far, foreign direct investment (FDI) in public sector refineries has been around 49 per cent. Continuing this limitation, Bharat Petroleum Corporation Limited. (BPCL) could not be sold to any foreign company. This is the reason for the government to increase it to 100%. However, the FDI limit has been raised only for matters relating to investment.
Currently, the government is only selling its stake in BPCL. At the same time, the country’s largest and second oil refining company, Indian Oil Corporation (IOC), is under government control. Moreover, Hindustan Petroleum Corporation Limited. (HPCL) is now a subsidiary of the Oil and Natural Gas Corporation (ONGC).
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Let us tell you that the government aims to raise Rs 1.75 lakh crore by investing in the financial year 2021-22. The government is selling its stake in BPCL to achieve this goal. Air India sales and LIC’s IPO are also part of this goal.