BPCL Current Affairs - 2020
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On February 5, 2020, the Minister of Petroleum and Natural Gas Shri Dharmendra Pradhan and the Chairman of Rosneft (Russia’s largest oil producing company) signed the first ever term contract. According to the contract India will import 2 million metric tonnes of Urals grade crude oil.
The agreement was signed between IOCL and Rosneft. The companies discussed on energy cooperation and hydrocarbon enhancement.
Rosneft is the largest oil producing company in Russia. The company is extended over 20 countries in the world. The company is to bid in the disinvestment of BPCL (Bharat Petroleum Corporation Limited). On November 20, 2019, the Union cabinet approved to privatize BPCL selling 52.98% of its stakes to private sector.
India and Russia Oil Ties
After the crude oil agreement, India and Russia are also looking for ways to sign agreements to bring LNG (Liquefied Natural Gas) supplies from Russia. Russia is estimated to posses 10 to 14 billion tonnes of oil and 15 trillion cubic metres of gas. The rich resources of Russia extends till Serbia in Pacific Ocean in the far East region.
Tags: BPCL • Crude oil Imports • Disinvestment • India-Russia • IOCL
Government of India misses its disinvestment target as the plan to sell Bharat Petroleum Corporation Limited (BPCL), Air India and Container Corporation of India has not been succeeded.
The Government had planned to sell 53.3% of BPCL, 31% of Concorp as per latest market prices. The Government had set the Disinvestment target of Rs 1.05 trillion for the year 2019-20. However, it was only able to extract Rs 17,364 crores. This has increased burden on the economy of the country as the fiscal deficit of the Government has already touched 115% of the budget estimated for the year 2019-20 as far as November 30. The deficit will increase further as there are another 4 months (Dec-Mar) to go before the financial year ends. The data was released by the Controller General of Accounts.
The missing of disinvestment target has impaired its ability to meet its Fiscal Deficit target of 3.3% of GDP. The fiscal deficit is arising in spite of RBI transferring Rs 1.76 lakh crore rupees. It was widely criticized as windfall money of the government.
What is Windfall money?
Windfall money is the term used for unexpected money good fortune. The RBI transferred the windfall to the GoI on recommendation of Jalan Committee.
Among all the disinvestment targets, Air India is the least performing and at huge losses. In order to solve the problem, recently it was announced that Air India will stop issuing tickets to government agencies that owe more than Rs 10 lakh due. This included defence accounts, CBI, BSF, Enforcement Directors, customs commissioners, etc.
Tags: Air India • Bimal Jalan Committee • BPCL • Disinvestments • Fiscal Deficit