Business

Cabinet Clears Sale Of Govt’s Stake in HPCL To ONGC

न्यूज़ वर्ल्ड इंडिया | 0
3228
| July 19 , 2017 , 19:18 IST

The cabinet on Wednesday cleared the sale of government’s stake in state-run refiner Hindustan Petroleum (HPCL) to oil exploration and production giant ONGC.

The sale of the 51.1% stake in HPCL to ONGC is likely to fetch the government around Rs 29,000 crore at current market prices.

However, there was no clarity yet on the price that ONGC will pay for the acquisition.

The government seems to have opted for acquisition route for combining the two companies, making HPCL a subsidiary of ONGC rather than merging the two. HPCL will retain its brand after its acquisition by ONGC.

However, the final deal can’t be reached immediately as the handover of HPCL to ONGC may take one year even after the government securing the cabinet green signal.