The government has decided to evaluate security risks associated with prospective buyers of state-run Bharat Petroleum Corporation Ltd (BPCL) such as indirect Chinese links before declaring the name of the highest bidder to avoid delays, people familiar with the matter said. The bidding process will be jeopardised if security clearance is denied to the declared winning bidder as the valuation of the company would be in the public domain by then, they added requesting anonymity. Hence security clearance prior to opening of the financial bid is a must, the people said.
“In the changed geopolitical scenario, it is necessary to be cautious. The sale of BPCL in the current finance year is crucial for the government to achieve its disinvestment target of Rs 2.10 lakh crore,” one of the persons said.
Officials said BPCL is of strategic importance and hence all precautions need to be taken to ensure no entity from hostile countries such as China and Pakistan have even indirect connections with the prospective buyers.
