After inviting initial bids for the sale of the government's stake in Hindustan Petroleum Corporation Ltd, the divestment ministry is now all set to flag off the process of divestment in Bharat Petroleum Corporation with the Inter-Ministerial Group scheduled to meet on February 13.

An IMG meeting has been scheduled for February 13 to discuss divestment of BPCL.

The government has decided to offload 35 per cent stake through public offering, sources said.

In the case of BPCL a public offer both in domestic and international markets would be made for 35.2 per cent stake, while 5 per cent equity would be offered to employees at a concessional price.

Following this, government equity in BPCL would come down to 26 per cent.

Meanwhile, keeping in line with the decision of Cabinet Committee on Divestment, the divestment ministry has also invited expressions of interest for the sale of 34 per cent stake in HPCL to a strategic partner.

Another 5 per cent stake would be offered to the employees, thus reducing the government equity to 12 per cent.

Sources said that the upcoming IMG is likely to discuss, among other things, the time-frame for calling bids for BPCL advisors.

"It may also discuss the details for the public offering," they pointed out.

It may be recalled that for HPCL, the prospective bidders have been asked to submit their applications by March 17, 2003.

As per the pre-eligibility criteria, the bidders, either singular or in a consortium, would have to have net worth of at least Rs 2,500 crore (Rs 25 billion) to submit expression of interest for equity in HPCL.

Further, in the case of consortium, net worth of only those partners would be taken into account who intend to have 10 per cent stake in the join bid.