Qualified Interested Parties in BPCL to Take Necessary Security Clearance: DIPAM

Qualified Interested Parties in BPCL to Take Necessary Security Clearance: DIPAM

 

File photo of a a Bharat Petroleum oil pump station in New Delhi. (Photo: Reuters)

File picture of a a Bharat Petroleum oil pump station in New Delhi. (Photograph: Reuters)

In keeping with the preliminary PIM provision, needed safety clearance, if required, shall be taken as per extant directions of the Authorities of India.

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  • Final Up to date: September 4, 2020, 10:56 PM IST
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The federal government on Friday mentioned events that evince curiosity in bidding for BPCL could be required to take needed safety clearance which might be communicated to them on the Request For Proposal (RFP) stage. “Obligatory safety clearance shall be taken as per the small print and necessities communicated to the QIP (Certified Events) on the time of RFP,” the Division of Funding and Public Asset Administration (DIPAM) mentioned whereas amending the Preliminary Data Memorandum (PIM) issued on March 7 for BPCL strategic stake sale.

In keeping with the preliminary PIM provision, needed safety clearance, if required, shall be taken as per extant directions of the Authorities of India. Every QIP might want to apply for safety clearance on the time of submission of monetary bids. Whereas the Cupboard had in November final 12 months accepted the sale of presidency’s total 52.98 per cent stake in BPCL, presents looking for expression of curiosity (EoI), or bids displaying curiosity in shopping for its stake, have been invited solely on March 7.

The EoI submission deadline was Might 2, it was prolonged as much as June 13 after which to July 31. It was then prolonged additional until September 30. The federal government of India is proposing strategic disinvestment of its total shareholding in India’s second-biggest oil refiner Bharat Petroleum Corp Ltd (BPCL) comprising 114.91 crore fairness shares which represent 52.98 per cent of BPCL’s fairness share capital.

The proposal additionally embody switch of administration management to a strategic purchaser, besides BPCL’s fairness shareholding of 61.65 per cent in Numaligarh Refinery Ltd — which shall be offered to a state-owned oil and fuel agency. The bidding shall be a two-stage affair, with certified bidders within the first EoI part being requested to make a monetary bid within the second spherical.

Public sector undertakings (PSUs) “aren’t eligible to take part” within the privatisation, the supply doc mentioned. Any non-public firm having a internet price of USD 10 billion is eligible for bidding and consortium of no more than 4 companies shall be allowed to bid.

‘Internet Value’ has been outlined as the mixture worth of the paid-up share capital and all reserves created out of the income and securities premium account, after deducting the mixture worth of the collected losses, deferred expenditure and miscellaneous expenditure not written off. “In case of consolidated financials, non-controlling curiosity (NCI) shall be included within the aforesaid definition of “Internet Value” for figuring out consolidated internet price primarily based on the consolidated monetary statements,” DIPAM mentioned in its amendments to the PIM.