The COVID-19 pandemic and preparations for the initial public offer (IPO) of Life Insurance Corporation of India (LIC) have slowed down the government’s plan of strategic sale of refiner Bharat Petroleum Corporation (BPCL). Discussions with potential investors for BPCL stake have not progressed much recently, Bloomberg has reported, quoting sources. 

The government plans to sell its entire 53.98 per cent stake in BPCL. Three companies, including Vedanta, have shown interest in buying the stake. 

The sale of the fuel retailer is likely to take place in early 2022 and not in 2021, the news agency has quoted a source as saying. While the discussions have slowed down, the divestment has not been stalled. Discussions are going on for potential bids for the government’s stake. 

The Centre has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including two PSU banks and one insurance company, in the current financial year. 

Preparations are on in full swing for the IPO of LIC. According to some estimates, the government can raise Rs 90,000-1,00,000 crore through the IPO. 

Last week, the government had invited bids from merchant bankers and legal advisers for advising it on the proposed mega IPO. Earlier this month, the Union Cabinet had approved the IPO. The modalities, such as issue size, pricing and timing, would be decided by a panel headed by Finance Minister Nirmala Sitharaman.