The Indian government has deferred the bidding deadline for the sale of its entire stake in the Bharat Petroleum Corporation Ltd. (BPCL) by more than a month to 13 June from 2 May.
The government hopes to fetch $6.17 billion by selling its 52.98 percent stake in the public sector oil company – which is also India’s second largest oil refinery.
The Department of Investment and Public Asset Management said on Tuesday that the change in the deadline was due to “Requests received from the interested bidders and the prevailing situation arising out of COVID-19. Further changes with respect to the Important Dates, if any, will be communicated to the Interested Bidders subsequently”.
An oil sector analyst told Sputnik on condition of anonymity that the government won’t itself prefer to sell the stake at a time when the market conditions are so unfavourable.
As per the bidding criteria issued by Dipam, a private company with $10 billion net worth is eligible for bidding. Also, bids can be placed in the form of a consortium of not more than four firms, with the lead partner of the consortium having a net worth of a minimum of $1 billion.
The BPCL operates four refineries in the Indian states of Maharashtra, Kerala, Madhya Pradesh, and Numaligarh town in Assam. All the four refineries process 38.3 million tonnes per annum combined.
