ONGC to take over HPCL

Cabinet in-principle nod to deal; HPCL to remain separate entity

The Union Cabinet on Wednesday approved the sale of its 51 per cent equity in Hindustan Petroleum Corporation (HPCL), the country’s second largest fuel retailer, to Oil and Natural Gas Corporation (ONGC). The deal will increase the government’s disinvestment proceeds by about Rs 30,000 crore.

Senior government officials told Business Standard ONGC, HPCL and the government would now decide how best to proceed with the deal. Once the process of ONGC buying the Centre’s stake in HPCL is decided upon, the Cabinet will give a final approval for the sale.

“HPCL will remain a separate entity, as a subsidiary of