Govt to mop up Rs 1,317.3 cr from stake sale

Govt to mop up Rs 1,317.3 cr from stake sale
ENS ECONOMIC BUREAU

NEW DELHI, MAR 21: The government will mop up Rs 1,317.3 crore from sale of its stake in three refineries to Indian Oil Corporation and Bharat Petroleum as part of oil sector restructuring. While BPCL paid Rs 659.1 crore to the petroleum ministry for acquiring 55.04 per cent stake in stand-alone Kochi Refinery ltd (KRL), IOC would pay a Rs 658.2 crore on March 29 for buying out government stake in Chennai Petroleum Corporation and Bongaigaon Refinery, petroleum minister Ram Naik said on Wednesday.

Naik said, the government has considered the asset-based valuation of the refineries for arriving at the fair value of shares. Accordingly, the government has decided to sell its entire shareholding in Chennai Petroleum at Rs 65.92 per share and in Kochi Refineries for Rs 86.85 per share.

Naik said, IOC will pay Rs 509.5 crore for acquiring 52.48 per cent government’s equity stake in Chennai Petroleum and Rs 148.7 crore for buying 74.46 per cent of govt equity in BRPL.