Teething issues remain for Hindustan Petroleum and ONGC merger

Purchase of government stake in ONGC leaves firm with tight cash positiongov

Public sector undertakings (PSUs) Oil and Natural Gas Corporation (ONGC) and Hindustan Petroleum Corporation (HPCL) have been developing synergies since the former bought the government stake in HPCL in a Rs 36,000-crore deal over three years ago.

Unresolved issues, however, continue to remain with the two PSUs, which work under the administrative control of the Union Ministry of Petroleum and Natural Gas.

According to officials, the ONGC management is unhappy because the purchase of the government stake in HPCL has left the oil exploration major with a tight cash position and, despite holding a controlling stake in HPCL, it has no managerial