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Tuesday, December 01, 2020

Vedanta confirms bid for BPCL, calls it ‘exploratory’

Vedanta Limited is the holding company of Cairn India, which accounts for around a quarter of India’s annual crude oil output. The deadline for submission of EoIs for BPCL was November 16.

By: ENS Economic Bureau | New Delhi | Updated: November 19, 2020 10:59:05 am
“Vedanta’s EoI for BPCL is to evaluate potential synergies with our existing oil and gas business. The EoI is at a preliminary stage and exploratory in nature,” said a company spokesperson in an official statement.

The Vedanta group confirmed on Wednesday that it has submitted an expression of interest (EoI) to acquire the government’s 52.98 per cent stake in Bharat Petroleum Corporation Ltd (BPCL).

Vedanta Limited is the holding company of Cairn India, which accounts for around a quarter of India’s annual crude oil output. The deadline for submission of EoIs for BPCL was November 16.

“Vedanta’s EoI for BPCL is to evaluate potential synergies with our existing oil and gas business. The EoI is at a preliminary stage and exploratory in nature,” said a company spokesperson in an official statement.

Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), had said on Monday that the Centre had received multiple EoIs for the strategic disinvestment of BPCL, but did not reveal the identity of the bidders.

The disinvestment of BPCL is a key part of the Centre’s plans to raises Rs 2.1 lakh crore from disinvestment proceeds in the current fiscal. “It is a logical move from Vedanta’s perspective since crude oil prices have been low and production from their fields has also not been high enough, said Vivekanand Subbaraman, analyst at Ambit Capital.

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