Government eases foreign investment rules to aid BPCL sale: Report – Times of India
[ad_1]
NEW DELHI: The Union Cabinet approved plans on Thursday to allow 100% foreign direct investment (FDI) in state-run oil companies in which a strategic stake sale is announced, a move to help privatisation of Bharat Petroleum Corp, two government sources said.
“Foreign investment up to 100% under automatic route is allowed in cases where government has accorded in-principle approval for strategic disinvestment of the PSU (public sector undertaking) engaged in petroleum and natural gas sector,” said one of the sources.
India so far allows 49% foreign direct investment in state-run oil and gas companies. The government wants to sell its near 53% stake in BPCL, the second-largest state-run refiner, in this financial year ending in March 2022, as part of plans to raise Rs 1.75 lakh crore($23.5 billion) from stakes in companies.
“Foreign investment up to 100% under automatic route is allowed in cases where government has accorded in-principle approval for strategic disinvestment of the PSU (public sector undertaking) engaged in petroleum and natural gas sector,” said one of the sources.
India so far allows 49% foreign direct investment in state-run oil and gas companies. The government wants to sell its near 53% stake in BPCL, the second-largest state-run refiner, in this financial year ending in March 2022, as part of plans to raise Rs 1.75 lakh crore($23.5 billion) from stakes in companies.
[ad_2]
Source link
