Cabinet go-ahead for ONGC to buy 51% stake in HPCL

HPCL will remain a separate entity as a subsidiary of ONGC

The Union Cabinet, on Wednesday, gave in-principle approval for state-owned upstream giant Oil and Natural Gas Corp(ONGC) to buy the government’s 51 per cent stake in Hindustan Petroleum. Such a takeover will make Hindustan Petroleum(HPCL) a subsidiary of ONGC, and it will indirectly remain a public-sector undertaking through the centre’s stake in ONGC.

Senior government sources told Business Standard that ONGC, HPCL and government will now decide how to proceed. Once the process of ONGC buying the centre’s stake in HPCL is decided upon, the cabinet will give a final approval for the sale to actually take place,