West Bengal government may invite joint bidding by Indian Oil Corporation (IOC) and Oil & Natural Gas Corporation (ONGC) for selling its about 40 per cent stake in Haldia Petrochemicals (HPL).
It is learnt that besides IOC, and ONGC, RIL, Cairn India, and GAIL are also eyeing the stake. The state government rejected Reliance IndustriesÂ’ (RIL) plea for an open auction for stake sale as it already announced it would be a closed bidding. The state government is learnt to have made all the documentation keeping in mind the fact that it would be a closed bidding.
Meanwhile, both ONGC and IOC may submit bids by August 31. The state government holds about 40 per cent stake in HPL, via the West Bengal Industrial Development Corporation (WBIDC). Essar Oil earlier rejected its plan to bid for the stake.
In an open auction, there are multiple rounds of bidding and participants can place higher bids after competitors declare their price. The older process, favoured by the other bidders, is a single price one, offered in a sealed envelope.
It is understood that the Expressions of Interest made it clear that it would be closed bidding. The state government is in a hurry to exit from HPL and their job would have been very complex if open auction was granted.
Leave a Reply
You must be logged in to post a comment.