BPCL net profit almost doubles to Rs 2,076 crore in Q1 - The Financial Express.
MUMBAI : State-run refiner Bharat Petroleum Corporation (BPCL) today posted a consolidated loss of ₹1,819.6 crore for the quarter ended March 2020 on inventory loss and lower gross refining margin.
The government wants to sell its 53.29 per cent stake in BPCL, the country's second-largest state-run refiner, to raise funds to rein in a ballooning fiscal deficit. New Delhi: A Bharat Petroleum Corp Ltd (BPCL) official said that the completion of the company's proposed privatisation by March 2021 looks challenging.
Who owns Hindustan Petroleum?
Oil and Natural Gas Corporation
Disinvestment in India is aimed at reducing the financial burden on the government due to the inefficient and poorly functioning PSUs (called sick units) and to improve public finance. It introduces competition and market discipline and helps to depoliticize non-essential services.
The argument was the government could utilise the money gained by selling off PSUs to improve services in public goods like infrastructure, health and education. But in practice, successive governments have found it easy to part with profit-making and strategic industries in the public sector.
The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources. In some cases, disinvestment may be done to privatise assets.
Privatization is the process of transfer of ownership of a public sector undertaking to the private sector. Disinvestment is a process in which an organization or government sells or liquidates the assets which it owns.
While the Numaligarh refinery will be carved out of BPCL and sold to a PSU, the new buyer of the company will get 35.3 million tonnes of refining capacity. BPCL also owns about 16,309 petrol pumps and 6,113 LPG (liquefied petroleum gas) distributor agencies in the country. Besides, it has 51 LPG bottling plants.
The government is collecting money by selling the entire stake in Bharat Petroleum Corporation Limited (BPCL) to give complete authority in private hands and the reason behind that low tax collection, steady growth, and GDP under 5%.
Ltd. (BPCL), privatisation of which will aid the government's push to achieve its divestment target for 2020-21. The government is keen to close the BPCL stake sale before March 31, 2021, to help meet the record Rs 2.1 lakh crore disinvestment target for 2020-21.
None, though, match up to BPCL, India's second-largest PSU by revenues in 2018-19.
