New Delhi, Feb 27: The board of privatisation-bound Hindustan Petroleum Corporation Ltd (HPCL) today approved giving state-owned Oil and Natural Gas Corporation (ONGC) a majority controlling holding in its loss-making joint venture Mangalore Refinery and Petrochemicals Ltd (MRPL). ONGC, which is buying Aditya Birla group's 37.4 per cent shareholding in MRPL for Rs 59.4 per cent, would infuse an additional Rs 600 crore capital for a 51 per cent stake post debt restructuring, sources said. After the takeover, MRPL would be the only Indian refinery operating on equity crude.

Presently, HPCL and ABG are equal partners in MRPL with 37.4 per cent stake each while the remaining 25.2 per cent is with the public. Post restructuring, HPCL's stake would fall to 16.9 per cent. Lenders would have about 20.8 per cent while public holding would come down to 11.3 per cent. Sources said MRPL board too met this afternoon and ratified ONGC takeover. It also decided to convene a meeting of the extra-ordinary general meeting of the shareholders to approve issue of additional preference shares to financial institutions who are converting part of their Rs 5,492 crore debt into equity. After restructuring, the debt-equity ratio will fall to 2.83:1 from current 15:1 and networth would enhance from Rs 343 crore to Rs 1,469 crore, sources said.

Bureau Report