Govt not to sell Tide Water Oil stake to ONGC

The government will not sell Andrew Yule's 28% stake in Tide Water Oil to ONGC and will instead go ahead with a fresh due diligence of the lube manufacturing company.

Sources in the Heavy Industries ministry told PTI that the government was of the view that the valuation of Tide Water Oil's stake as done by ONGC was too low for which it preferred not to sell it to the oil major.

The valuation arrived at by ONGC for 28% stake in Tide Water Oil was around Rs 60 crore. The upstream oil company had evinced interest in lubricant maker Tide Water Oil in 2006, the sources said.

Tide Water Oil is a subsidiary of Andrew Yule and Company, which is into industrial equipment and tea business.

The sources said the sale of stake was a part of the revival package of Andrew Yule and Company, which was sanctioned recently.

BIFR had received enquiries from other suitors, for which a fresh due diligence would be done to arrive at a fair value of the company's shares.