(TH)
The creation of ‘integrated energy major’ will not affect the proposed mega refinery project, which is a combined initiative of three public sector oil refining-cum-retailing companies.
Takeover proposal
“There will no overlaps or conflicts. As and when work takes place on integrated energy major it will be a smooth transition of business,” Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum & Natural Gas, told BusinessLine.
Under active consideration is a proposal that public sector energy giant ONGC will take over one of the refiner-cum-retailers such as Hindustan Petroleum Corporation Ltd (HPCL). In all likelihood the government will adopt the holding company concept.The plan is to transfer the government’s holding to ONGC, making the latter the holding company. The other oil companies — Oil India, in the upstream sector, and Indian Oil Corporation (IOC) in the downstream sector — will operate unchanged.
According to B Ashok, Chairman, IOC, integrated energy major is a policy prescription which has been made by the Finance Minister, Arun Jaitley, in his 2017-18 Budget. Merger concept is not new to Indian oil companies. For example: The Bongaigaon Refinery was merged with IndianOil. IBP, once IndianOil’s subsidiary was also merged; Mangalore Refinery and Petrochemicals was taken over by ONGC.
