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ONGC to acquire residual stake of HPCL in MRPL
New Delhi, Dec 05: State-run Oil and Natural Gas Corporation proposed to acquire residual stake of Hindustan Petroleum Corporation Ltd in Mangalore Refinery & Petrochemicals Ltd (MRPL) after it takes over the loss-making refinery from A V Birla Group, the Lok Sabha was informed today.
New Delhi, Dec 05: State-run Oil and Natural Gas Corporation proposed to acquire residual stake of Hindustan Petroleum Corporation Ltd in Mangalore Refinery & Petrochemicals Ltd (MRPL) after it takes over the loss-making refinery from A V Birla Group, the Lok Sabha was informed
today.
"As part of restructuring to further improve the viability of MRPL, ONGC has expressed an interest in acquiring HPCL's shares," minister of state for petroleum & natural gas Santosh Kumar Gangwar said in a written reply.
Ongc has proposed to acquire 37.39 per cent stake of A V Birla group in the 9 million tonnes refinery for Rs 59.43 crore besides infusing an additional equity of Rs 600 crore that would take its total shareholding to 51 per cent.
After financial restructuring, which includes lenders converting part of their debt into equity, HPCL's stake in MRPL would come down to about 17 per cent from the present 37.39 per cent.
Gangwar said government has not yet taken a decision on ONGC's proposal to acquire majority stake in MRPL.
To another question, he said ONGC expected an internal rate of return of over 17 per cent from its investment in MRPL.
"Acquisition of MRPL by ONGC will enable ONGC to set up the retail outlets sanctioned to it under the marketing rights for transportation fuels," he said.
ONGC has been authorised to set up 600 petrol stations in four states. Bureau Report
Ongc has proposed to acquire 37.39 per cent stake of A V Birla group in the 9 million tonnes refinery for Rs 59.43 crore besides infusing an additional equity of Rs 600 crore that would take its total shareholding to 51 per cent.
After financial restructuring, which includes lenders converting part of their debt into equity, HPCL's stake in MRPL would come down to about 17 per cent from the present 37.39 per cent.
Gangwar said government has not yet taken a decision on ONGC's proposal to acquire majority stake in MRPL.
To another question, he said ONGC expected an internal rate of return of over 17 per cent from its investment in MRPL.
"Acquisition of MRPL by ONGC will enable ONGC to set up the retail outlets sanctioned to it under the marketing rights for transportation fuels," he said.
ONGC has been authorised to set up 600 petrol stations in four states. Bureau Report