The Cabinet is likely to consider tomorrow the sale of Government’s 51.11 per cent stake in Hindustan Petroleum Corp ltd (HPCl) to Oil and Natural Gas Corp (ONGC) for over Rs 28,000 crore, a source said.
The Department of Investment and Public Asset Management (DIPAM), ministry of finance, has moved the proposal for consideration of the Cabinet Committee on Economic Affairs (CCEA), said the source who could not be named because the information is not public.
Flowing from Finance Minister Arun Jaitley’s Budget announcement of creating an integrated oil company, the government plans to divest its entire 51.11 per cent shareholding in India’s third-biggest fuel retailer HPCl to oil producer ONGC.
HPCl will however not be merged with ONGC. It will remain a separate entity and operate as ONGC’s subsidiary.