ONGC set for 26.22% stake in Tide Water

Oil and Natural Gas Corporation has completed due diligence for picking up Andrew Yule's 26.22 per cent stake in Tide Water Oil Company.

"We are in favour of selling the entire Andrew Yule stake in Tide Water Oil Co to ONGC. The due diligence is over and the proposal is now expected to be taken to the Board for Reconstruction of Public Sector Enterprises," Heavy Industry Minister Santosh Mohen Deb told reporters on the sidelines of a seminar organised by Standing Conference of Public Enterprises.

Tide Water Oil, which makes lubricants, is a subsidiary of Andrew Yule and Company Ltd, which is into industrial equipment and tea business. Andrew Yule holds 26.22 per cent stake in Tide Water Oil.

The sale of stake in Tide Water Oil is part of the overall plan of reviving Andrew Yule, which is expected to come to around Rs 170 crore.

The sale of 26.22 per cent in Tide Water Oil will fetch the government around Rs 37.6 crores based on the current price of the company scrip, which is quoting at Rs 1,650 on the bourses.

The minister also said Scooters India Ltd was in talks with Italian company Piaggio for supply of four-stroke engines.

The Lucknow based company has dropped its earlier plans to scout for a joint venture partner or technical collaboration and is now focusing on finalising a regular supplier for four stroke engines.

Priyadarshi Thakur, secretary DPE, said the committee of secretaries (CoS) which had been formed to examine the recommendations of the BRPSE would now consider the revival proposals of Bharat Wagon, HMT Machine Tools and the proposal for the closure of Bharat Opthalmic Glass (BOGL). BRPSE had approved the closure of BOGL.

Thakur said the revival package for HMT Machine Tools was Rs 735 crore, a significant portion of which would be raised through the sale of surplus land in Bangalore. "The revival package will, therefore, contain part bridge loan and part waiver of outstanding dues," he said.