Cabinet may take up Mittal's HPCL stake buy on Thursday
The Cabinet Committee on Economic Affairs may consider on Thursday a petroleum ministry proposal to allow steel baron Lakshmi N Mittal's firm to take 49 per cent stake in state-run HPCL's Bhatinda refinery.
By PTI |
NEW DELHI: The Cabinet Committee on Economic Affairs may consider on Thursday a petroleum ministry proposal to allow steel baron Lakshmi N Mittal's firm to take 49 per cent stake in state-run HPCL's Bhatinda refinery.
Petroleum Ministry has proposed to grant project-specific approval to Mittal Investments Sarl, the holding company of L N Mittal, to pick up stake in Hindustan Petroleum's refinery and the CCEA could take it up tomorrow, official sources said.
The proposal was necessitated since as per the current policy, foreign direct investment in petroleum refineries of public sector units is permitted only up to 26 per cent.
The current policy also restricts PSU holding to 26 per cent in such projects and makes it mandatory for the balance 48 per cent to be offered to public.
Oil ministry's proposal comes days after the Foreign Investment Promotion Board declined to consider a proposal by Mittal Investments to buy the stake on grounds it could not discuss the matter as government rules do not permit foreign investors to buy 49 per cent shareholding in PSU refineries.
HPCL had on March 2 signed an agreement with Mittal Investments for the 9 million tons refinery in Punjab.
Mittal Investments is picking 49 per cent stake in the refinery for Rs 3,365 crore through its 100 per cent arm, Mittal Energy Investments Pte Ltd incorporated in Singapore.
HPCL will also hold 49 per cent stake in the Rs 17,973 crore project while the balance two per cent would be allocated to financial institutions.
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