Progress on BPCL privatisation but little information: Fitch Ratings

Fitch Ratings on Friday said there is more visibility on BPCL privatisation, but there is still little information on potential restrictions for the new owner in relation to employee protection, asset stripping, and investment lock-in.

Also, there is a need for further clarity on the future of subsidies paid to BPCL’s customers on the sale of LPG and kerosene as well as the freedom on the pricing of petrol and diesel before the divestment can conclude, it said.

The government is selling its entire 53.98 per cent stake in India’s second-largest fuel retailer Bharat Petroleum Corporation Ltd (BPCL). Three firms, including Vedanta Ltd, have evinced interest in buying the stake.