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Tuesday, 25 July 2017

CCEA gives in-principle approval for selling 51% stake in HPCL to ONGC

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Monday gave in-principle approval for sale of government's 51.11 percent stake along with management control in HPCL to ONGC, Oil Minister Dharmendra Pradhan has informed.

HPCL will continue as PSU after ONGC acquisition of stake, Pradhan added.

BPCL has a market cap of Rs 1,01,860.56 crore and buying government's 54.93 percent would alone have entailed an outgo of about 56,000 crore.

HPCL on the other hand has a market cap of Rs 58,485.55 crore and buying government's entire 51.11 percent stake would entail an outgo of Rs 29,900 crore.

There are only six major companies in the oil sector -- ONGC and Oil India Ltd being the oil producers, IOC, HPCL and BPCL in refinery business and GAIL in midstream gas transportation business.

The rest, such as ONGC Videsh, Chennai Petroleum Corp (CPCL), Numaligarh Refinery Ltd and MRPL, are already subsidiaries of one of these six PSUs.

HPCL will add 23.8 million tonnes of annual oil refining capacity to ONGC's portfolio, making it the third-largest refiner in the country after IOC and Reliance Industries.

Source:-Zeenews
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