The company invested Rs 11,000 crore on capex in 2020-21. BPCL management also said that it has no plans to sell its stakes in
(IGL) or , both listed entities, even as the state-run oil marketing major goes for privatisation.
“We intend to spend Rs 12,000 crore in 2021-22. No major high cost high cost projects are planned to be started in FY22. Minor projects for the maintenance of the company will continue but we are not taking a view of major projects right now,” said N Vijayagopal, chief finance officer.
The finance head said that none of the board approved projects will be curtailed but the company is going slow on new projects.
“We are not taking up any new major projects; like for example Rasayani where we had planned to invest a substantial amount of money which we have put on hold for the time. We are not sure about the demand going forward, we are watching this space,” he said.
The company did not comment on the timeline for its divestment process.
“BPCL has no intention to pare its stake in IGPL of Petronet. As of today, there are regulations which make it mandatory for the acquirer of BPCL to make an open offer for the minority shareholders in both. The government of India and BPCL are aligned to ensure that that does not happen because it is very destructive for BPCL,” Vijayagopal said.
The government is in the process of selling its entire 52.98% stake in BPCL, as a part of its divestment strategy. Bidders, including mining-to-oil conglomerate
and private equity firms Apollo Global and I Squared Capital‘s arm Think Gas, are in the process of analysing the ‘Clean Data Room’ containing commercially sensitive information and will also conduct physical inspection of assets as a part of the due diligence process.