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Union cabinet relaxes foreign investment rules to aid BPCL sale

Union cabinet relaxes foreign investment rules to aid BPCL sale

The Union Cabinet has reportedly approved increase in FDI limit in the petroleum PSU to 100% from 49% currently

India so far allows 49% foreign direct investment in state-run oil and gas companies (Source:Reuters) India so far allows 49% foreign direct investment in state-run oil and gas companies (Source:Reuters)

India's federal cabinet approved plans on Thursday to allow 100% foreign direct investment in state-run oil companies in which a strategic stake sale is announced, a move to help privatisation of Bharat Petroleum Corp, two government sources said.

"Foreign investment up to 100% under automatic route is allowed in cases where government has accorded in-principle approval for strategic disinvestment of the PSU (public sector undertaking) engaged in petroleum and natural gas sector," said one of the sources.

India so far allows 49% foreign direct investment in state-run oil and gas companies. The government wants to sell its near 53% stake in BPCL, India's second-largest state-run refiner, in this financial year ending in March 2022, as part of plans to raise 1.75 trillion rupees ($23.5 billion) from stakes in companies.

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