Decision on Mittal's HPCL stake buy tomorrow
CCEA will take up Mittal's proposal to pick up 49 pc stake in HPCL's Bhatinda refinery on Thursday.
By Agencies |
NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA), on Thursday, will consider petroleum ministry proposal to allow steel baron Lakshmi N Mittal to pick up 49 per cent stake in state-run HPCL's Bhatinda refinery, Petroleum Minister Murli Deora said on Wednesday.
"It will be decided in the cabinet tomorrow," Deora told reporters on the sidelines of a function here.
The petroleum ministry has granted project-specific approval to Mittal Investments Sarl, the holding company of L N Mittal, to pick up stake in Hindustan Petroleum's refinery.
The proposal was required as per the current policy, which restricts foreign direct investment in public-sector petroleum refineries to 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.
HPCL had on March 2 signed an agreement with Mittal Investments for the nine million tons refinery in Punjab.
Mittal Investments will acquire 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.
"It will be decided in the cabinet tomorrow," Deora told reporters on the sidelines of a function here.
The petroleum ministry has granted project-specific approval to Mittal Investments Sarl, the holding company of L N Mittal, to pick up stake in Hindustan Petroleum's refinery.
The proposal was required as per the current policy, which restricts foreign direct investment in public-sector petroleum refineries to 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.
HPCL had on March 2 signed an agreement with Mittal Investments for the nine million tons refinery in Punjab.
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Mittal Investments will acquire 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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