The government has entered into an agreement with Oil and Natural Gas Corporation (ONGC) Limited for the strategic sale of its 51.11 per cent equity share-holding in Hindustan Petroleum Corporation limited for 36,915 crore rupees.
The Finance Ministry in a release said, during the review in February 2016, the Prime Minister had underlined the need of efficient management of government investments in Central Public Sector Enterprises. It said, an announcement in this regard was also made by the Finance Minister Arun Jaitley in his last Budget Speech.
The Ministry said, through this acquisition, ONGC will become India’s first vertically integrated oil major company, having presence across the entire value chain.
The integrated entity will have advantage of having enhanced capacity to bear higher risks, take higher investment decisions and neutralizing the impact of volatility of global crude oil prices.