Air India and Bharat Petroleum sold in 2020? Stock Market News.

Will Air India-Bharat Petroleum be sold in the year 2020?

The Modi government may try to sell Bharat Petroleum and Air India in the new year. This is actually a part of the reform agenda of the central government. Modi government really wants to sell loss making companies.

Modi government can give entry in the refinery business in India to foreign companies through the sale of BPCL.

India is currently a big market for fossil fuels. With the appointment of Deloitte as a consultant for strategic sales at BPCL, now its sales process has gained momentum. Now the resistance of BPCL workers is also soft.

A few days ago there was news that the country's largest state-owned Maharatna oil and gas company BPCL, Bharat Petroleum, could buy Saudi Aramco. The report states that the deal can be between Rs 510 to Rs 1100 per share. However, no statement has been issued by the central government in this regard.

The story of Air India is completely different though. Due to years of mismanagement, it is no longer attractive to investors. Also, because of the 49 per cent limit, there is no attraction in it for foreign investors.

Air India's debt has increased to Rs 80,000 crore and is losing Rs 22-25 crore daily. The debt burden on Air India has reached such an extent where its debt management is not possible and there is no solution other than privatization of the airline.

In fact, buying Air India is not beneficial for domestic airlines. Air India has suffered a loss of about Rs 9,000 crore this year, once the central government has failed to sell its stake earlier. This time the government does not want to go back in any way. By reducing Air India's debt, the Modi government is trying to make it an attractive deal.

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