Why privatization of BPCL will be a good thing for all stakeholders

The government has set a tall divestment target of ₹1.05 trillion for FY20. Needless to say, it would need to sell stakes in some of the large public sector companies to achieve the target.

Here, state-run oil marketing and refining company, Bharat Petroleum Corp. Ltd (BPCL), seems to be on the radar. Earlier this month, a Business Standard report said that the government is considering selling its entire stake worth over ₹40,000 crore in BPCL. Of course, like similar such deals in the recent past, the stake sale will most likely be to another government-owned entity, Indian Oil Corp. Ltd (IOC).