BPCL privatisation | Business Upturn

BPCL unveils Rs 49,000 crore capacity expansion plan

United News of India (UNI) — Wed, 17 May 2023 12:25:09 +0000

New Delhi, May 17 : Public sector oil major BPCL on Wednesday announced Rs 49,000 crore capex plan with the core component of the expansion project being the ethylene cracker project.

The company said that the project encompasses the establishment of an ethylene cracker (EC) complex, downstream petrochemical plants, as well as the expansion of the existing refinery capacity from 7.8 MMTPA to 11 MMTPA and associated facilities at Bina Refinery (Madhya Pradesh).

It noted that Bina refinery expansion will meet the growing demand of petroleum products in central and northern India while also providing necessary feedstock to the EC complex.

“Combined with our investment in Wind Energy and new age Petroleum Oil Lubricants installations built for sustainable processes, this is a watershed moment in our strategic endeavor to be at the forefront in meeting the rapidly growing demand for energy and Petrochemical products in India,” said G Krishnakumar, C&MD, BPCL.
BPCL said that the proposed expansion project aligns with its vision to diversify and expand in adjacent and alternative businesses to create additional revenue streams and cleaner environment by building the renewable energy portfolio.

BPCL divestment to be profitable just like Air India’s privatisation: Petroleum Minister Hardeep Singh Puri

Himanshu Mishra — Wed, 16 Feb 2022 13:29:02 +0000

Minister of Petroleum and Natural Gas Hardeep Singh Puri expects to imitate the success of Air India divestment in the much-delayed sale of the state run-oil marketing firm Bharat Petroleum Corporation Ltd (BPCL), the minister told in an exclusive conversation to CNBC-TV18.

The Indian government had ambitious strategies to auction its entire 53% stake in BPCL to private players in 2021-22, but holdups have moved this mark to 2022-23. Potential buyers who demonstrated interest are Anil Agarwal-led Vedanta Group, Apollo Global Management and private equity major I Squared Capital-backed Think Gas– are yet to find supporters to fund the deal.

“BPCL is a first-grade investment and it is looking better by the day. Give me a few months,” Puri said in a response to a question on divestment of the company to CNBC-TV18. Puri, who was previously the minister of civil aviation, said that he was optimistic that like Air India, BPCL will be successfully divested.

Puri said that the EOI (expression of interest) arriving now or later is not the problem government will privatize BPCL. He further asserted that it will be a transaction like Air India, which everyone will applaud as a very good segment of the authorities privatization program.

Puri further said, “I’m very proud of the fact that I had an association with that privatization process. It started after two failed attempts when I became civil aviation minister in 2019. And it was completed just a few weeks or a month after I handed over (the ministry).”

However, it was on January 27, the Tata Group finalized the takeover of Air India, along with Air India Express and a stake in AI-SATS. The government had invited proposals for a 100% stake in the national carrier in March 2020 and the Tata Group appeared as the winner in the proposals in October 2021.

BPCL privatisation hits a roadblock as bidders struggle to find partners: Report

Cheryll Jain — Mon, 25 Oct 2021 12:13:21 +0000

Indian Government’s endeavour to privatise Bharat Petroleum Corp. has hit a roadblock as potential bidders struggle to find partners to reduce the rate of financial risk with buying the state-run refiner-cum-fuel retailer.

According to sources, the three potential suitors — the Vedanta Group, Apollo Global Management and I Squared Capital — have been in talks with several global energy giants and pension funds but have not found success in finalising partners for the BPCL bidding.

The reluctance of the companies to invest in the fuel retailer stems largely from the newly adopted sustainability rules and the global action of energy transition in light of the increasing risk posed by climate change, sources claimed. Moreover, the ramifications of the pandemic have also become a cause of apprehension, discouraging firms from making large-scale investments in the fossil fuel sector.

The hindrance in the process of finalising bidders for the sale is expected to slow down what is being termed as the nation’s biggest privatization drive. The selling of BPCL is estimated to generate $13 billion for the government, which holds a 53 per cent stake in the entity, and other shareholders.

The sources further added that the high valuation of BPCL has compelled the government and potential investors to look out for a consortium of bidders that can provide a strong technical and financial foundation for the acquisition.

“Bidders are conducting due diligence, but uncertainties over the bidder consortium and process complexity, including valuation may lead to potential delays,” American-based credit rating agency Fitch Ratings Ltd. predicted last month.

The slow-paced privatisation process of BPCL is likely to clash with the Centre’s aim to conclude the selling process by the end of the current financial year in March, for which the bidding process was scheduled to commence in November.