India is considering making it easier for foreign investors to buy control of Bharat Petroleum Corp., as per people acquainted with the matter, as the government tries to sell the state company and bridge a widening budget deficit.
If the cabinet clears the offer, overseas funds
would no longer need government approval to buying a 100% stake in state-run refiners cleared in-principle for disinvestment, the people said, asking not to be identified as the deliberations are private. The limit would stay 49% for firms not lined up for asset sales.
India needs to discovery a buyer for its 53% stake in BPCL, one of two major state companies-- the other being Air India Ltd. -- identified by the government to aid shore up its assets following a deadly second wave of coronavirus infections. The government has budgeted $23 billion from divestments in the fiscal year that started April 1.
A finance ministry spokesperson declined to comment on the matter.
BPCL swung to a record profit of 119.4 billion rupees ($1.6 billion) in the three months ended March 31 from a loss of 13.6 billion rupees the prior year. The numbers were supported by the sale of a unit.
