Awaiting EoI to decide on BPCL bid: IOC chairman Sanjiv Singh.

State-run Indian Oil Corporation (IOC) is waiting for the government to issue the expression of interest (EoI) document for sale of the Centre’s stake in Bharat Petroleum Corporation (BPCL) to decide if it will bid.

IOC chairman Sanjiv Singh said the country’s largest refiner would await more details on the sale and whether PSUs would be allowed to take part in the auctions.

“The EoI has not come out yet and we don’t know the conditions,” Singh told reporters, adding that “there has been no communication from the government yet asking PSUs not to bid”.

As FE reported earlier, IOC was evaluating the option of throwing its hat in the ring to bid for the government’s stake in BPCL, which tops strategic disinvestment list firmed up for the current fiscal.

According to an internal note circulated among IOC top brass which FE had accessed, its marketing division discussed “the issue of taking the government stake in BPCL or the ONGC stake in HPCL by IOC”, in the light of risks to its business from possible privatisation of BPCL, at a meeting on October 25 last year.

In light of petroleum minister Dharmendra Pradhan’s repeated assertion that “the government has no business to stay in business”, there are speculations that a clause barring PSU participation might be incorporated in the EoI and PIM document for BPCL stake sale.

The government would rather sell its 53.3% stake in BPCL to a private firm. Saudi Aramco and Reliance are reportedly among the possible bidders for the asset · than sell it to another PSU.

Currently, IOC owns 43% fuel retail outlets in the country while BPCL’s share is 23%. HPCL owns 24% of the domestic fuel retail network.

IOC fears that new entrant making “better offerings in high potential markets” would have “an immediate impact on IOC volumes”.

To face the competition, it was also planning to ask the government to relax norms regarding dealer selection and implementation of government schemes as it fears that the company’s bottom line could be affected from the burden of implementing the government schemes.

IOC chairman Sanjiv Singh said the country’s largest refiner would await more details on the sale and whether PSUs would be allowed to take part in the auctions.

“The EoI has not come out yet and we don’t know the conditions,” Singh told reporters, adding that “there has been no communication from the government yet asking PSUs not to bid”.

As FE reported earlier, IOC was evaluating the option of throwing its hat in the ring to bid for the government’s stake in BPCL, which tops strategic disinvestment list firmed up for the current fiscal.

According to an internal note circulated among IOC top brass which FE had accessed, its marketing division discussed “the issue of taking the government stake in BPCL or the ONGC stake in HPCL by IOC”, in the light of risks to its business from possible privatisation of BPCL, at a meeting on October 25 last year.

In light of petroleum minister Dharmendra Pradhan’s repeated assertion that “the government has no business to stay in business”, there are speculations that a clause barring PSU participation might be incorporated in the EoI and PIM document for BPCL stake sale.

The government would rather sell its 53.3% stake in BPCL to a private firm. Saudi Aramco and Reliance are reportedly among the possible bidders for the asset · than sell it to another PSU.

Currently, IOC owns 43% fuel retail outlets in the country while BPCL’s share is 23%. HPCL owns 24% of the domestic fuel retail network.

IOC fears that new entrant making “better offerings in high potential markets” would have “an immediate impact on IOC volumes”.

To face the competition, it was also planning to ask the government to relax norms regarding dealer selection and implementation of government schemes as it fears that the company’s bottom line could be affected from the burden of implementing the government schemes.

THE FINANCIAL EXPRESS