ONGC not to take over GSPC debt; deal to retire only 40% of PSU's loan

The Gujarat government-owned company has been under the lens of the CAG for incurring this huge debt

Oil and National Gas Corporation’s (ONGC’s) buying 80% stake in the flagship asset of Gujarat State Petroleum Corporation (GSPC) will be without a debt takeover. 
 

GSPC has Rs 20,038 crore of loans (from about 15 banks) on its books on account of the Deendayal Upadhyaya block’s discovery in the Krishna-Godavari basin. The Gujarat government-owned company has been under the lens of the Comptroller and Auditor General of India (CAG) for incurring this huge debt. With this $1.2-billion (Rs 8,160 crore) deal, GSPC will not be able to retire even half its debt.

Says D K Sarraf, chairman and managing director