Privatisation of Bharat Petroleum Corp will unlock value by increasing investment and technology, its chairman told a shareholders meeting on Monday. ”This (privatisation) is expected to unlock tremendous value through sharpening of professionalism, improvement inefficiencies, increased investments, access to advanced technologies and newer global markets and product diversification, thus propelling future growth,” K Padmakar said.

The government is targeting that sale of its 53.29 percent stake in BPCL in this fiscal year ending March 2021. But the privatisation could spill over into the next fiscal year, according to a government document and sources.

The privatisation of key companies, including BPCL, is a key part of government plans to pare the fiscal deficit, which has breached its target level just four months into the current fiscal year. Industry sources last year estimated the government’s 53.29 percent stake in BPCL could fetch USD 8 billion to USD 10 billion.

The sale has been targeted for completion in the current fiscal year at end-March, but the deadline for initial expressions of interest was pushed out by two months due to pandemic-related movement restrictions that have prevented potential buyers from inspecting the facility.

First Published:Sept 28, 2020 11:51 AM IST