French oil giant Total SA is eyeing minority stakes in India's stand-alone refineries as part of its plan to enter the downstream petroleum business in the country.
The company has initiated talks with some public sector units like Cochin Refineries Ltd (CRL), Madras Refineries Ltd (MRL) and Bongaigaon Refineries and Petrochemicals Ltd (BRPL).
The plan envisages picking up between 10 and 20 per cent stake in the refineries and providing expertise for setting up retail outlets once oil marketing is deregulated.
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Jean-Claude Breton, Total's chief representative in India, told Business Standard that discussions are on with some PSUs for an alliance. "The company is studying various options to enter the downstream sector. We have not yet earmarked any investment plan,'' he added.
Breton said Total would like to pick up minority stakes in some of the stand-alone refineries till marketing is deregulated. "Once permission is granted for setting up marketing networks, we will provide the know-how for setting up retail outlets and market products.''
Another option would be to set up a marketing joint venture. The products could be marketed either under the Total brand name or through the joint venture company under a different brand name.
The stand-alone refineries have large capacities but no marketing support. They would be unable to survive alone after complete deregulation of the oil sector.