On Thursday the government permitted 100% foreign investment under the automatic route in oil and gas PSUs which have received in-principle approval for strategic disinvestment. The move would facilitate the privatisation of India’s second-biggest oil refiner Bharat Petroleum Corp Ltd (BPCL). BPCL privatised the government and sold its entire 52.98 % stake in the company.
According to a press note of the Department for Promotion of Industry and Internal Trade (DPIIT), a new clause has been added to the FDI policy for the oil and natural gas sector.
“Foreign investment up to 100% under the automatic route is allowed in case an ‘in-principle’ approval for strategic disinvestment of a PSU has been granted by the government,” it said.
