In order to ensure wider participation in the strategic sale of Hindustan Petroleum Corporation, the divestment ministry has proposed that there should be no investment criteria for the prospective bidders for the downstream company.
This is in contrast to the sale of IBP Ltd, when the bidders were required to show proof of having made an investment of at least Rs 2,000 crore (Rs 20 billion) in the country's petroleum sector.
"We decided not to put any investment criteria on the prospective bidders to ensure that foreign companies can participate. The net worth criteria for the prospective bidders would be there as usual," a senior divestment ministry official said.
In the case of IBP, which was acquired by Indian Oil Corporation, the government had introduced the condition to weed out non-serious bids.
According to the note circulated ahead of Friday's CCD meeting, the government will offload 26 per cent equity in HPCL to a strategic partner and offer 3 per cent of the company's stock to employees at a concessional price as was done in the case of Videsh Sanchar Nigam Ltd.
In the case of Bharat Petroleum Corporation, in which the divestment ministry has recommended a public float of 35 per cent equity through domestic and international issues, 5 per cent equity is proposed to be earmarked for the company employees.
The note says that the divestment in the two companies would be completed in the next eight months.