ONGC can acquire MRPL stake

Finance ministry has consented to the state exploration firm Oil and Natural Gas Corporation (ONGC) buying out Hindustan Petroleum Corporation Ltd (HPCL) in the loss-making Mangalore Refinery and Petrochemicals (MRPL).

"Finance ministry yesterday convened a meeting of top oil ministry and ONGC brass to seek certain clarification on the state-run firm's proposal. After deliberating the pros and cons at length, the finance ministry gave its go ahead," sources in government said here.

The meeting was convened on petroleum ministry's Cabinet note, seeking approval of ONGC buying out HPCL's 16.95 per cent stake in MRPL.

The proposal to buy HPCL's 29,71,53,517 shares will now be put before the Cabinet for final approval, sources said adding if approved, ONGC stake in MRPL will climb to 87.95 per cent. ONGC had last year bought out Aditya Birla group's 37.4 per cent stake in loss-making MRPL for Rs 59.43 crore at Rs 2 a share.

It infused additional Rs 600 crore as fresh capital as part of a debt restructuring package. "The acquisition price will be decided as per Sebi norms," they added.