Rs500cr bank guarantee for IBP Petroleum

Vol 5, PW 12 (01 Aug 01) News in Brief

Interested bidders for the government's 33.59% stake in petrol retailer IBP Petroleum will be asked to furnish a Rs500cr ($110m) bank guarantee, reports Business Line.

Disagreement between the oil ministry and the Department of Disinvestment over the bank guarantee has delayed cabinet approval to float bids, said the paper in an article on 26th July. It's understood that the oil ministry was asking for a bank guarantee of Rs2,000cr ($440m), while the Department of Disinvestment wanted no guarantee.

A compromise figure of Rs500cr was reached during a meeting last month of an 'Inter Ministerial Group' monitoring the sale.