Bharat Petroleum Corporation Limited (BPCL) appointed Arun Kumar Singh as the new chairman and MD. In a recent AGM, he had stated that divestment would happen by March-end.

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Singh clarified that as of now, due diligence is going on and since it is a large company, the due diligence would take some time. “We are hopeful. It is likely that divestment process per se will get over by FY22, that is by March 2022,” he added.

“The stake valuation is a confidential exercise. So, we will have to go by the integrity of the process and integrity of the process demands that valuation discussion etc., are kept confidential,” said Singh, in an interview with CNBC-TV18.

When asked about their stake in IGL and Petronet LNG, now that the Department of Investment and Public Asset Management (DIPAM) has written to SEBI seeking open offer exemption and if there was an update on that front?

“We cannot say whether the exemption will come or not. But as of now, responses are awaited. However, he assured that based on the response, the government of India and particularly DIPAM and Ministry of Petroleum and Natural Gas will sit and work out a solution which satisfies all the stakeholders,” said Singh.

When asked if the government had worked on the post-divestment policy contours, for example, what happens to the LPG subsidy? What happens in terms of extending subsidies on the sale of LPG and kerosene to the new owner of BPCL?

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He said, “BPCL has a huge LPG consumer base and so whatever is done will be done in the interest of consumers, as well as the company. To my mind, anything that happens cannot ignore such a huge consumer base. So, there will be a solution at the request of the customer and in the interest of the company.”

For the full interview, watch the accompanying video

(Edited by : Dipika Ghosh)

First Published:Sept 29, 2021 4:22 PM IST