Cabinet has approved plans to allow 100 per cent FDI in state-run oil companiesThe Union Cabinetapproved plans on Thursday to allow 100 per centforeign 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 100 per centunder 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 49 per centforeign direct investment in state-run oil and gas companies.
The government wants to sell its near 53 per centstake 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 ($23.5 billion) from stakes in companies.