Sources said a new discussion on new terms and conditions for the divestment has yet to begin. The oil ministry is skeptical about getting a good response in the current geopolitical situation, they said.
In May, the Government withdrew its offer to sell all of its 52.98% stake in BPCL, saying that the majority of bidders expressed their inability to participate in the privatization process due to conditions common events in the global energy market.
The sources added that the economic uncertainty created by successive waves of Covid-19 is not over yet, adding that the oil ministry also feels that invisible retail price controls can be affect the prospect of divestment.
Besides, many issues raised by investors in previous discussions are still unresolved. These include issues related to cross-holdings and asset grouping that still need to be addressed
The Oil Department believes a new approach to marketing and refining of BPCL’s assets is needed to get a better valuation, sources told ET NOW.
On Wednesday, the stock traded at Rs 331.10, down 0.75%.