NEW DELHI: The government on Thursday cleared 100% FDI (foreign direct investment) through the automatic route in public sector oil companies, paving the way for overseas investors to acquire Bharat Petroleum Corporation, which is up for sale.
The clearance will allow foreign companies to invest in other state-run oil companies that the government may divest in future.
The current policy caps FDI in state-owned oil companies at 49% but allows 100% foreign holding in the private sector entities.
The decision will be implemented through an executive order and will not require any legal amendment.
All the three entities who have submitted EoI (expression of interest) have foreign investment. Anil Agarwal’s Vedanta, through an SPV with its London-based parent Vedanta Resources, Apollo Management and Think Gas, have submitted EoIss for acquiring the government’s 52.98% stake in BPCL.
