As the central government gets ready to sell its stake in the state-owned Bharat Petroleum Corporation Limited aka BPCL the nation is ready to face a ‘notional loss’ of 4.5 lakh crores said the Public Sector Officers Association (PSOA).
The divestment of BPCL a state-owned oil firm, is likely to fetch the govt ₹74,000 cr but would also cause a ‘notional loss’ of ₹4.46 lakh cr, given that its mkt price of total assets > ₹9 lakh cr, according to Public Sector Officers Association.https://t.co/aFVubSpRgA— Larissa Fernand (@larissafernand) December 11, 2019
The government which is planning to sell its 53.29% stakes in the BPCL aims to fetch ₹74,000 crore, including a control premium of 30%. According to the PSOA BPCL’s assets are valued at more than ₹9 lakh crore according to the replacement value method.
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Actual Market value of govt’s stake in BPCL: Rs 5.2 LAKH Crore.— Gaurav Singh (@I_GauravBaghel) December 11, 2019
Price that BPCL is being sold: Rs 0.74 lakh crore.
Total loss to the country: Rs 45,00,00,00,00,000
This is why the government wants all of us to focus on CAB and NRC.#CAB_नहीं_चलेगा pic.twitter.com/YVCyg7hqhd
PSOA has also received the support of the Federation of Oil PSU Officers (FOPO) and Confederation of Maharashtra Company Officers Association (COMCO) in regards to there estimation of the loss from BPCL’s disinvestment.
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2G notional loss was 1.76 Crores , BPCL sale notional loss 4.46 crores pic.twitter.com/o2TYiD4Pfr— Atul Modani (@atulmodani) December 11, 2019
In an official statement Mukul Kumar convenor, FOPO and COMCO said, “Against the current preliminary indicative market price of the total assets of BPCL of ₹9 lakh crore (in-house estimates), there would be a minimum notional loss of ₹4.46 lakh crore to the country. Besides, the disinvestment is not going to benefit the company or the country in any manner”.
As per PSOA government’s 53.29% stake is worth about ₹5.2 lakh crore. BPCL’s assets are worth a total of ₹7,50,730 crore as per the calculations presented by PSOA. This amount goes up to ₹9,75,980 crore if control premium of 30% — or ₹2,25,218 crore — is added.
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BPCL which has a 24% market share among oil PSUs is profit-making PSU and has reported a net profit of ₹7,132 crore on a turnover of over ₹3.37 lakh crore in FY19.
Credits: The Hindu