New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has given in-principle approval for the sale of the government's 51.11 per cent stake along with the management control of HPCL to the ONGC, Oil Minister Dharmendra Pradhan said today.
Hindustan Petroleum Corporation Ltd (HPCL) will continue as a public sector undertaking after Oil and Natural Gas Corporation Ltd (ONGC) acquires its stake, the minister said in the Lok Sabha.
"The proposed acquisition in the oil sector will create a vertically integrated public sector oil major company having presence across the entire value chain. "This will give ONGC an enhanced capacity to bear higher risks, take higher investment decisions and to neutralise impact of global crude oil price volatility," Pradhan said.
The minister was making a statement in the House regarding the sale of the government's existing stake of total paid up equity shareholding in HPCL to ONGC.
