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IBP sell-off unlikely before resolving subsidy issue

The government will have to resolve the crucial issue of subsidy on petroleum products before embarking upon the proposed divestment of IBP.

Sources in the petroleum ministry said that as nationalised oil companies like IOC, BPCL and HPCL were selling petroleum products in which a subsidy element was in-built, the government will have to thrash out a solution in case a private or a foreign player was chosen as a strategic partner for IBP.

They added that the issue would not pose any problem if the strategic partner happened to be another oil PSU.

Meanwhile, a few parallel LPG marketing companies were already clamouring for getting a subsidy from the government so that their prices were at par with those of the PSUs.

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