The government finally managed to break the logjam over oil sector divestment today with the Cabinet Committee on Disinvestment (CCD) clearing the strategic sale of 34 per cent equity in Hindustan Petroleum Corporation Ltd and the public float of 35.2 per cent equity in Bharat Petroleum Corporation Ltd (BPCL).
As part of the compromise between the disinvestment and petroleum ministries thrashed out by Prime Minister Atal Bihari Vajpayee and Deputy Prime Minister LK Advani, Oil and Natural Gas Corporation (ONGC) will not be allowed to bid for HPCL, while the government will ensure the completion of the Bina and Bhatinda refineries being constructed by the two companies.
The disinvestment ministry had earlier put forth the Planning Commission