MUMBAI: Employee associations of state-run oil companies on Saturday opposed planned strategic sale of Bharat Petroleum Corporation (BPCL), stating that it may bring revenue for the government but its long-term impact will be adverse.
The government plans to sell its majority stake in the oil marketeer which can help it raise over Rs 70,000 crore. A senior Finance Ministry official had said this week that the sale might be deferred to the next fiscal.
The Confederation of Maharatna Officers Association (COMCO) and Federation Of Oil PSU Officers (FOPO) on Saturday held a joint press conference here. The two associations claimed that selling off BPCL will result in a loss, because it is valued at 9.75 lakh crore while the government ownership is 53.29 percent for which it will be getting a maximum of Rs 7,50,00 crore.
"BPCL is the most efficient profit-making company of the nation, which has been giving Rs 17,000 crore annually since last five years. We are requesting the government to review the decision of disinvestment of BPCL," said Amit Kumar, a senior officer of ONGC. He added that the disinvestment will be a short-term gain but a long-term loss.
If the government wants, it can privatise or divest its stake in some other public sector companies whose performance is poor, he said, adding it will be interesting to see which private company takes over such PSUs. "Energy sector is considered strategically important, and privatization of a public sector company in this sector is a threat to the country's security," said Anil Medhe of BPCL.
FOPO convener Mukul Kumar said that BPCL is the most professionally-run company among HPCL, IOC, and its employees are "surprised" by the government's decision.