Union Cabinet approves 100% FDI in PSU refiners to aid BPCL sale

Current FDI policy restricts FDI in oil PSUs to 49%; most bidders who have shown interest in acquiring BPCL have foreign investment

The Union Cabinet on Thursday approved a proposal to allow 100 per cent foreign direct investment (FDI) in public sector refiners, expanding the scope for FDI in the privatisation of Bharat Petroleum Corporation Ltd (BPCL).

The approval by the Cabinet will enable the sale of the government’s 52.98 per cent stake in BPCL to a foreign buyer, and, at the same time, will open the door for FDI in other public sector companies in the oil sector put up for privatisation.

“FDI up to 100 per cent will be allowed under the automatic route in cases where a public sector undertaking has