(PTI)
Hindustan Petroleum Corporation Limited (HPCL) hasn’t recognised ONGC as its promoter three months after a government directive and a subsequent reiteration to do so. HPCL management’s argument that it needed more regulatory clarity is being widely perceived by petroleum and natural gas ministry officials and ONGC executives as a delaying tactic, according to people with direct knowledge of the matter.
In its latest regulatory filing, on April 18, HPCL retainedgovernment as its promoter and classified ONGC as a public shareholder. The government owns no share in HPCL since it sold its entire 51.11% stake in the company to ONGC for Rs 37,000 crore in the first quarter of 2018.
The petroleum and natural gas ministry had directed HPCL in January, more than nine months after the acquisition and following multiple representations by ONGC, to recognise its majority shareholder as promoter along with the President of India. HPCL then said it had sought certain clarifications from the government and once these are received, the shareholding pattern would change. In its clarification to HPCL a month ago, the ministry reiterated its position. But HPCL’s shareholding shareholding pattern would change. In its clarification to HPCL a month ago, the ministry reiterated its position. But HPCL’s shareholding pattern didn’t change.
