The Union Cabinet on Thursday approved plans to allow 100% foreign direct investment in state-owned oil companies in which a strategic sale of stakes is announced, a move to help the privatization of Bharat Petroleum Corp , said two government sources.
“Foreign investments of up to 100 percent by automatic route are allowed in cases where the government has granted its approval in principle for the strategic divestment of the PSU (public sector enterprise) engaged in the oil and natural gas sector. one of the sources said.
India so far allows 49 percent of foreign direct investment in state-run oil and gas companies. The government wants to sell its nearly 53% stake in BPCL, India’s second largest state-owned refiner, in this fiscal year ending March 2022, as part of plans to raise Rs 1.75 trillion ( $ 23.5 billion) from corporate stakes.