Bharat Petroleum faces expansion issues

Foreign Firms are not to buy Bharat Petroleum due to labour laws

This year British Petroleum (BP) and Total of France are not going to participate in the bidding for the acquisition for Bharat Petroleum due inflexibility of locations and tough labour laws.

For Bharat Petroleum due to the PPP (Public-Private Partnership) only 52.98% of the company's stake is available for bidding. It is considered that the totalling bid would be around 75,000 Crore as a buy out. The bidding would allow control over Bharat Petroleum's oil refineries in Mumbai, Kochi, and Bina. Alongside the control is granted over 16,000+ petrol pumps 6,000+ LPG distributor agencies and more than 1/5 of 256 aviation duel stations.

The drawback is that the refineries in Bina, Madhya Pradesh and Kochi have inflexible locations, and stringent labour laws. Alongside, due over-hiring of 12,000 labour is difficult for foreign producers to cut down on and mechanise.