Public sector companies like Air India and the BBCL are not allowed to reduce the number of employees in private equity firms, Pandey said.
The number of employees in public sector companies is higher than in private companies. Similarly, private companies that buy these two companies may want to reduce the number of employees. However, he noted that the move would have provisions that would guarantee employees’ work. He added that it could not be done. He noted that the transfer process will take place in two stages. In the next few days, the BBC’s intention to divest will be announced.
He declined to disclose what terms would be included in the stock exchange agreement to protect employees. Started as Tata Airlines in 1932, it was later a state-owned enterprise. The company has been facing losses since 2007. The company’s debt burden is Rs 60,074 crore. The company will have to pay Rs 23,286 crore.
In the case of the BBCL, 5.2 per cent of the state-owned shares will be given preference. The BBCL accounts for 14 percent of India’s oil refineries. The company’s market capitalization is Tk 1 lakh crore. The government’s contribution is Tk 1.5 crore.
The acquiring company will be allowed to buy a similar 26 percent stake in the open market. The BBC has oil refineries in Mumbai, Kochi, Bina (MP) and Numligarh (Assam). They are capable of refining 38.3 million crude oil annually. The company has 15,177 petrol stations and 6,011 LPG distribution centers nationwide. There are 4 LPG bottling plants. The company has 250 refueling stations.