Monday, August 8th, 2022 22:45:14

ONGC may take over HPCL or BPCL

Updated: March 7, 2017 1:13 pm

The government is planning to create an integrated oil company under an arrangement in which Oil and Natural Gas Corporation  may take over either of Hindustan Petroleum Corporation or Bharat Petroleum Corporation. Finance Minister Arun Jaitley in his Budget speech on February 1 had said the government plans to integrate public sector oil companies to rival big international and domestic private sector oil firms. The government is a majority stakeholder in both, HPCL and BPCL, holding a stake of 51.1 percent in HPCL and 54.9 percent in BPCL. ONGC is unlikely to take

over both entities. After the Budget speech, it was widely speculated that government will merge all three entities to create an industry giant. However, the government feels a takeover will be a profitable route, as it leads to divestment gains.

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