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ONGC to take control of HPCL to create larger oil sector entity: Report

India plans to create a giant oil company by combining state-owned firms

ONGC to take control of HPCL to create larger oil sector entity - ET
A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts of Ahmedabad
Reuters Mumbai
Last Updated : Feb 27 2017 | 10:34 AM IST

India's state-run Oil and Natural Gas Corp will take control of Hindustan Petroleum Corp as part of the government's plan to create an integrated public sector oil entity, the Economic Times daily reported on Monday citing top government officials.

India plans to create a giant oil company by combining state-owned firms, finance minister Arun Jaitley said in the budget speech earlier this month as the world's third largest oil consumer looks to better compete with global majors in acquiring foreign assets.

"It is a very big decision. A cabinet note will soon be moved. The government of India will transfer its majority shareholding (of 51.11 percent in HPCL) to ONGC, which will then become the holding company of HPCL," the paper wrote citing one of the officials.

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First Published: Feb 27 2017 | 10:00 AM IST

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