Jaitley to head panel on HPCL stake sale to ONGC

TIL Desk/Business/New Delhi/ Finance Minister Arun Jaitley will head a 3-member ministerial panel to oversee and expedite the sale of government stake in oil refiner HPCL to explorer ONGC, Oil Minister Dharmendra Pradhan said today.

Hindustan Petroleum Corp Ltd (HPCL) will remain a public sector unit with a separate board and brand identity post Oil and Natural Gas Corp (ONGC) acquiring government’s entire 51.11 per cent stake, which at current prices is valued at about Rs 28,800 crore.

Post-merger all refining units of ONGC will be accumulated under HPCL, making it India’s third largest oil refiner after Indian Oil Corp (IOC) and Reliance Industries, Pradhan said.

Making a suo motu statement in the Lok Sabha, he said the Cabinet Committee on Economic Affairs (CCEA) had on July 19 given ‘in-principle’ approval for strategic sale of the government’s existing 51.11 per cent stake in HPCL to ONGC along with the transfer of management control.

“For overseeing this transaction, CCEA approved setting up of an alternative mechanism, headed by Finance Minister, which will help in taking quick decision with regard to the timing, price, terms and conditions and other related issues,” he said.