The Union Cupboard on Thursday authorized a proposal to permit 100 per cent overseas direct funding (FDI) in public sector refiners, paving the way in which for overseas investments within the privatisation of Bharat Petroleum Company (BPCL).
The approval will allow the sale of presidency’s 52.98 per cent stake in BPCL to a overseas purchaser, whiile concurrently opening the doorways to overseas funding in different oil PSUs that the Narendra Modi administration decides to privatise in future.
“FDI as much as 100 per cent might be allowed below the automated route, in circumstances the place a public sector endeavor has acquired in-principle approval for strategic divestment (within the oil and gasoline sector),” a authorities official advised Enterprise Normal.
As per the federal government’s present FDI coverage, 49 per cent overseas funding is allowed in public sector refining, and 100 per cent within the non-public sector.
“The present coverage permits solely 49 per cent FDI by way of computerized route in petroleum refining by PSUs. It doesn’t permit overseas firms to position their bids, as investments over 49 per cent aren’t permitted below the FDI coverage. This needed to be modified,” the official cited