Virus may force delay in BPCL, A-I stake sale

Tribune News Service

New Delhi, March 22

With Covid-19 threat engulfing the country leading to volatile capital market situation and steep fall in prices of global crude prices, the government has indicated its major disinvestment plans, including that of Air India and Bharat Petroleum Corporation Ltd (BPCL), have taken a beating and will not meet the timelines fixed.

‘Not best time’ to invite bids

• Amid recession fears in aviation sector, the govt may extend deadline for preliminary bids for Air India from April 30 to June 1
• Also, the May 2 deadline for submission of expressions of interest by prospective buyers for BPCL may be extended, say sources

Sources in the government said there was fear of recession in the aviation sector mainly on account of the virus spread and thus it was not the best time to invite bids for Air India.

“Even large businesses are monitoring the impact of the epidemic closely. So, the government is thinking of extending the deadline for submission of preliminary bids for Air India from April 30 from June 1,” said a senior official.

A senior official in the disinvestment department of the Ministry of Finance said: “As the aviation is one the worst affected sectors and international businesses have postponed events till May 31, there are suggestions to extend the deadline for submission of preliminary bid from April 30 to June 1.”

In 2018, the government had attempted to sell Air India and restarted the process in January. The government later extended the deadline for submission of preliminary bids for Air India to April 30 from March 17. The Cabinet Committee on Economic Affairs has allowed NRIs to own 100 per cent stake in Air India.

Similarly, for divesting its entire holding of 52.98 per cent in Bharat Petroleum Corporation Ltd (BPCL), the government had invited expressions of interest (EoI) from prospective buyers by May 2. This was announced in the first week of March through the bid document issued by the Department of Investment and Public Asset Management (DIPAM).

However, officials in the DIPAM indicated the date for EoI might be extended, preferably on a later date in June, as the world would gradually overcome the spread of Covid.