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  Business   Companies  27 Feb 2017  ONGC to take control of HPCL to create larger oil sector entity

ONGC to take control of HPCL to create larger oil sector entity

REUTERS
Published : Feb 27, 2017, 12:51 pm IST
Updated : Feb 27, 2017, 12:51 pm IST

Government of India will transfer its majority shareholding (of 51.11 per cent in HPCL) to ONGC.

 The world's third largest oil consumer looks to better compete with global majors in acquiring foreign assets. (Representational Image)
  The world's third largest oil consumer looks to better compete with global majors in acquiring foreign assets. (Representational Image)

India's state-run Oil and Natural Gas Corp will take control of Hindustan Petroleum Corp as part of the government's plan to create an integrated public sector oil entity, the Economic Times daily reported on Monday citing top government officials.

India plans to create a giant oil company by combining state-owned firms, finance minister Arun Jaitley said in the budget speech earlier this month as the world's third largest oil consumer looks to better compete with global majors in acquiring foreign assets.

"It is a very big decision. A cabinet note will soon be moved. The government of India will transfer its majority shareholding (of 51.11 per cent in HPCL) to ONGC, which will then become the holding company of HPCL," the paper wrote citing one of the officials.

Tags: ongc, hpcl, public sector oil entity