BUSINESS

GAIL to bid for govt stake in HPCL

Source:PTI
December 10, 2002 17:10 IST

After Oil and Natural Gas Corp and Indian Farmers Fertiliser Co-operative Limited, state-run gas firm Gas Authority of India Limited on Tuesday said it would bid for acquiring controlling stake in oil refiner Hindustan Petroleum Corporation if it was permitted by the government policy.

"Yes, we certainly are keen on making a bid," a highly placed company sources told PTI in New Delhi.

GAIL is the third public sector company after ONGC and fertiliser giant IFFCO, which has evinced interest in participating in HPCL's divestment process to achieve vertical integration.

However, PSU suitors for HPCL would have to make a plea with their administrative ministry who would then make a case for them at the Cabinet Committee on Divestment.

As per the September 7 decision of the CCD, all PSUs have been debarred from bidding for another PSU and exceptions would be made if administrative ministries made convincing cases.

"Our board is to meet on December 19 where a formal view would be taken (on HPCL bidding). After board nod, we will make a formal application to the petroleum ministry for being allowed to bid," sources said.

Like ONGC, which is looking to become a vertically integrated company by stepping into downstream oil refining, GAIL too is looking at synergies with its current businesses ranging from gas transmission to petrochemicals and oil exploration.

"HPCL would certainly add value to our business chain," sources added.

Source: PTI
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