The Narendra Modi government on Wednesday approved the sale of government's stake in five central public sector enterprises (CPSEs), including state-owned Bharat Petroleum Corporation Ltd (BPCL), Shipping Corp of India (SCI) and Container Corp of India.

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The government will sell its 53.29 percent stake in BPCL after taking out Numaligarh refinery from its portfolio, she told reporters in New Delhi.

Besides, the government will sell its stake in THDC India and North Eastern Electric Power Corporation Ltd (NEEPCO) to state-owned NTPC Ltd, she said.

Finance minister said the Cabinet has also approved cutting government's stake in select PSUs below 51 percent while retaining management control.

BPCL's stake sale is part of the government's disinvestment target of Rs 1.05 lakh crore, which also includes divestment of other state-owned companies such as Shipping Corp of India (SCI), THDC India Ltd and North Eastern Electric Power Corp Ltd, and a 30 per cent stake sale in Container Corp of India.

Privatisation of BPCL will not just shake up fuel retailing sector long dominated by state-owned firms but also help meet at least a third of the government's Rs 1.05 lakh crore disinvestment target.

Currently, 95 percent of retail petrol and diesel sales and near 100 percent of cooking gas (LPG) and kerosene sales are controlled by the public sector units.

India is the fastest-growing energy market in the world and the global oil giants are keen to gain a foothold. Acquisition of BPCL, which has 15,177 petrol pumps out of a total of 65,973 outlets in the country, provides an excellent opportunity to gain one-fourth of the market share. The company distributes 21 percent of petroleum products consumed in the country by volume as of March this year.

The company operates 38.3 million tonnes per annum of oil refining capacities at Mumbai, Kochi, Bina and Numaligarh, which is 15 percent of India's total refining capacity of 249.4 million tonne. BPCL also has more than a fifth of the 250 aviation fuel stations in the country.

First Published:Nov 20, 2019 9:41 PM IST