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Narendra Modi prepares to buy stake in Bharat Petroleum Corporation Limited

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The government is about to sell its entire 52.98 percent stake in BPCL. BPCL is India’s second largest retailer of fuel and the third largest crude oil refining company. In November last year, the Union Cabinet approved the sale of the government’s entire 52.98 per cent stake in BPCL. For this, a letter of interest or a bid was invited till March 7. However, later the government extended this deadline till May 2 and again till June 13. After this, the bidding deadline was extended for the third time till September 30, the government has proposed strategic disinvestment of its entire stake in BPCL. The government holds 114.91 crore shares in the company, which is equivalent to 52.98 percent stake in the company. In addition, management control of the company will also be transferred to the strategic buyer. The company acquiring BPCL will own more than 16,309 petrol pumps, 6,113 LPG distribution agencies and more than 20 percent of the country’s 256 aviation fuel stations, apart from its three refineries‚Ķ Bina Refinery in Mumbai, Kochi Madhya Pradesh, Kerala. A source familiar with the bidding process said that the biggest attraction for companies involved in the race to acquire BPCL is the retail network of fuel sales. BPCL’s share in this market is 22 percent.

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