09:05 GMT25 January 2020
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    New Delhi (Sputnik): The Indian government had approved disinvestment of its entire 53.3 percent stake in the state-owned fuel retail major BPCL to a strategic buyer. This is the country’s largest disinvestment plan of the Indian government. With falling tax revenues, India is looking for alternative revenue sources.

    India’s big ticket plan to privatise major government fuel retailer BPCL has received a lacklustre response from investors at a global roadshow meant to draw investors’ interest.

    At the company's current valuation, the stake of Indian government in BPCL is currently worth $7.74 billion.

    The roadshow was organised by the Department of Investment and Public Asset Management under the Ministry of Finance in Houston, Texas and London a week ago, according to sources aware of the development.

    Sources, however, pointed out that global roadshows had generated a lukewarm response for picking up the Indian government’s stake. The global energy firms, which the Indian side thought would participate, gave the roadshow a pass.

    The Indian government expected that global players such as Exxon, British Petroleum, Kuwait Petroleum, Aramco and Shell would show interest in India’s plan to privatise BPCL.

    Failure to generate investor interest assumes a lot of significance, as the government wants to finalise the privatisation by March 2020, as Indian finance minister Nirmala Sitharaman indicated earlier.

    India’s revenue generation plan for the year 2019-20 calls for divestment which would bring in $14.78 billion.

    By March 2020, the government also plans to sell off the beleaguered national carrier Air India for which bids will be solicited after 7 January.

    Related:

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