Global headwinds to hit BPCL, Air India sale
New Delhi/Mumbai: The outbreak of Covid-19 and the collapse in global crude oil price may have dealt a twin blow to the government’s plans to privatize Air India (AI) and Bharat Petroleum Corp. Ltd (BPCL).
The spread of the virus to more than 100 countries and leading to the death of more than 4,300 people has hit the travel and hospitality industry the hardest, with countries imposing both inward and outward travel bans. Brent crude was down almost 3% to $36 per barrel on Wednesday after Saudi Arabia and the United Arab Emirates announced plans to boost production capacity.
Present market conditions do not favour the planned sell-off of BPCL and Air India, said Madan Sabnavis, chief economist at Care Ratings. Sabnavis said he expects the sale to be held in abeyance for the time being.
