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Government eases foreign investment rules to aid BPCL sale: Report


NEW DELHI: The Union Cabinet on Thursday approved plans to allow 100% foreign direct investment (FDI) in state-owned oil companies in which a strategic stake sale is announced, a move to aid the privatization of Bharat Petroleum Corpsaid two government sources.
“Foreign investment up to 100% automatically is allowed in cases where the government has granted approval in principle for the strategic divestment of the PSU (public sector company) dedicated to the oil and natural gas sector”, said one of the sources.
India so far allows 49% of foreign direct investment in state oil and gas companies. The government wants to sell its close to 53% stake in BPCL, the second-largest state-owned refinery, in this financial year ending March 2022, as part of plans to raise Rs 1.75 lakh crore ($ 23.5 billion) from stakes in companies.

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