Lok Sabha Question No. 4192 (UNSTARRED), answered on 2021-03-22
Subject: Reforms in Operations of BPCL
Ministry: PETROLEUM AND NATURAL GAS
Asked by: A. Chellakumar, Vincent H Pala, Behanan Benny, K. Muraleedharan, Kumbakudi Sudhakaran, M. Selvaraj

## LOK SABHA

## UNSTARRED QUESTION NO.4192

## TO BE ANSWERED ON 22 nd  MARCH, 2021

## Reforms in Operations of BPCL

## 4192   DR. A. CHALLAKUMAR:

SHRI VINCENT H. PALA:

SHRI BENNY BEHANAN:

SHRI K. MURALEEDHARAN:

SHRI KUMBAKUDI SUDHAKARAN:

SHRI M. SELVARAJ:

## पेोलयम एवं ाक ृतक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the annual dividend of Bharat Petroleum Corporation Limited (BPCL) for the last ten years;
- (b) the projected annual dividends and other receipts from BPCL for the next ten years;
- (c)  the  current  valuation(s)  of  BPCL  by  the  Government,  employee  unions,  and  any other stakeholders;
- (d) whether the Government is taking any steps to ensure proper price discovery in the evaluation process for BPCL and if so, the details thereof;
- (e)  whether  the  expected  receipts  from  disinvestment  exceed  the  projected  receipts from dividends by BPCL and if so, the details thereof; and
- (f)  whether  the  Government  has  developed  or  considered  any  plan  to  reform  the management  and  operations  of  BPCL  to  improve  its  competitiveness  and  efficiency while maintaining ownership, if so, the details thereof and if not, the reasons justifying the same?

## ANSWER

पेोलयम एवं ाक ृतक गैस मंी ( ी धम धान )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) & (b)      Annual dividend received from BPCL in last 10 years is at Annexure. Being a listed company, under the Companies Act, 2013, the decision for payment of dividend vests with the Board of the Company, hence no projections can be made by the Govt. as the promoter. The other main receipts are in the nature of direct and indirect taxes, the incidence of which does not depend upon the ownership of the Company.
- (c) & (d)      As per the extant procedure, valuation made by the Advisors appointed by the Govt. only is considered for Reserve Price fixation. In order to ensure non-collusive

competitive  bidding,  absolute  confidentiality  is  maintained  in  the  valuation  and  the Advisors are bound by the Confidentiality Undertaking in this regard. Valuation provides only a benchmark for fixation of Reserve Price while the price discovery is a product of competitive  bidding.  The  process  of  financial  bidding  is  guided  by  the  principles  of transparency, fair play, promoting competition and ensuring highest degree of integrity and  probity.  The  Reserve  Price  is  arrived  at  through  a  due  process  only  after  the financial bids have been received.

(e)  The  quantum  of  disinvestment  receipts  from  BPCL  will  be  known  only  after  the successful conclusion of the transaction.

(f)  Government  expects  that  the  strategic  buyer  will  bring  funds/technology/new management  etc.  for  optimum  development  of  business  potential  of  the  BPCL.  The growth of the BPCL, post-disinvestment, would be able to generate higher economic activity including growth of the ancillary industries, and creation of new job opportunities. The resources unlocked by the strategic disinvestment of BPCL would be used  to  finance  the  social  sector/developmental  programmes  of  the  Government benefiting the public.

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## Annexure

Annexure referred to in reply to part (a) of the Lok Sabha Unstarred Question No.4192  for  22.3.2021  asked  by  Dr.  A  Challakumar  and  others  regarding 'Reforms in Operations of BPCL'.

## Annual Dividend from BPCL for the last ten years (Accrual Basis)

| Year    |   Annual Dividend (Rs.in cr) |
|---------|------------------------------|
| 2019-20 |                      3579.27 |
| 2018-19 |                      4121.58 |
| 2017-18 |                      4555.43 |
| 2016-17 |                      4700.05 |
| 2015-16 |                      2241.56 |
| 2014-15 |                      1626.94 |
| 2013-14 |                      1229.24 |
| 2012-13 |                       795.39 |
| 2011-12 |                       397.7  |
| 2010-11 |                       506.16 |