NEW DELHI: India's federal cabinet approved plans on Thursday to allow 100per cent foreign direct investment in state-run oil companies in which a strategic stake sale is announced, a move to help privatisation of Bharat Petroleum Corp, two government sources said.
"Foreign investment up to 100per cent under automatic route is allowed in cases where government has accorded in-principle approval for strategic disinvestment of the PSU (public sector undertaking) engaged in petroleum and natural gas sector," said one of the sources.
India so far allows 49per cent foreign direct investment in state-run oil and gas companies. The government wants to sell its near 53per cent stake in BPCL, India's second-largest state-run refiner, in this financial year ending in March 2022, as part of plans to raise 1.75 trillion rupees (US$23.5 billion) from stakes in companies.
(Reporting by Nidhi Verma; Writing by Manoj Kumar)