Mittal, OIL clamour for HPCL refinery pie
By TNN |
Highlights
NEW DELHI: Trouble seems to be brewing over Hindustan Petroleum���s (HPCL) greenfield refinery at Bhatinda in Punjab. While sources in industry said that LN Mittal is likely to pick up 49% equity stake in the refinery, public sector Oil India (OIL) is also pitching for a 26% equity stake.
This would leave promoter HPCL as a minority stakeholder in the project with only 25% stake, which is unlikely to be the case, reports Our Bureau. According to sources in the industry, two situations have emerged ��� one with OIL and another without OIL.
In case OIL agrees to pick up 15% equity stake in Guru Gobind Singh Refinery, then Mittal will have a 49% stake, and the balance 36% will be held by HPCL. If OIL declines to join the consortium, then both Mittal and HPCL would have 49% each in the company and the balance equity stake would be given to financial institutions (FIs).
It is learnt that OIL will not compromise below 26%. ���We are aware of the development and we are not interested in buying anything less than 26% in HPCL���s Bhatinda refinery,��� OIL, director SK Patra told ET. On earlier occasions, even HPCL had said that it would retain a majority shareholding in the company.
Sources said that Mittal���s foray into Indian refining sector will be welcomed, but OIL should be given due preference. ���It will, however, be the commercial decisions of these companies,��� an official said. Sources in the petroleum ministry said that there has been no meeting between minister and Mittal over this issue.
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Mittal group is likely to invest in the refining business through Mittal Investments, a wholly-owned subsidiary of the Mittal family. Officials of both Mittal Investments and HPCL could not be contacted for their comments. Start a SIP with as low as ₹500 with ET Money App!
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