Union cabinet approves sale of BPCL, SCI and Concor

The Union Cabinet approved sale of government’s stake in oil firm BPCL, shipping firm SCI and onland cargo mover Concor, as well as decided to cut shareholding in select public sector firms below 51 percent to boost revenue collections.

The Cabinet Committee on Economic Affairs (CCEA) approved sale of government’s entire 53.29 percent stake along with transfer of management control in the country’s second biggest state owned refiner Bharat Petroleum Corp Ltd (BPCL) after removing Numaligarh refinery from its fold, the Finance Minister Nirmala Sitharaman said.

The cabinet also approved sale of 53.75 percent out of the government holding of 63.75 percent stake in Shipping Corporation of India (SCI) and 30.9 percent stake in Container Corp of India (Concor).

The government currently holds 54.80 per cent in Concor. Besides, the government will sell its entire holding in THDC India and North Eastern Electric Power Corp Ltd (NEEPCO) to state power generator NTPC Ltd, the minister added.

The Cabinet also approved reducing government’s stake in select PSUs such as Indian Oil Corp (IOC) to below 51 percent while continuing to retain management control.

The management control will continue to be retained with the government after considering equity held by other state-run companies in the divested firm. The government currently holds 51.5 per cent in IOC and another 25.9 percent through state-owned Life Insurance Corp of India (LIC), and explorers Oil & Natural Gas Corp (ONGC) and Oil India Ltd (OIL).

The Government can potentially sell 26.4 percent for about Rs. 33,000 crore.