The strategic disinvestment in Hindustan Petroleum Corporation Ltd (HPCL) is expected to fetch the government at least Rs 8,000 crore.
These estimates were based on the fact that disinvestment in a smaller company, like IBP Ltd, had yielded the government Rs 1,153 crore.
Officials said since the assets of HPCL were much more than those of IBP, it would fetch at least five to six times the price commanded by IBP.
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While IBP had 1,500 petrol pumps on April 1, 2002, HPCL had 4,729 outlets. IBP had only 375 kerosene depots all over the country against 1,638 of HPCL.
Regarding liquefied petroleum gas (LPG) agencies, IBP had 54 and HPCL 1,822. While IBP had no bottling plant of its own, HPCL had 50.
Moreover, while IBP had no refinery of its own in the country, HPCL had around 17.5 million tonnes of refining capacity.
Similarly, while IBP had no pipeline of its own, HPCL had 161 km Mumbai-Pune pipeline and 576 km Vizag-Vijaywada-Sikandrabad pipeline. IBP had no tanking facility of its own, whereas HPCL had 3.4 million kilolitres of such facilities.
The fate of the Bhatinda refinery project of HPCL remains uncertain despite yesterday