CCEA to consider ONGC's proposal for acquiring MRPL stake

NEW DELHI: The Cabinet Committee on Economic Affairs is likely to consider tomorrow Oil and Natural Gas Corporation''s proposal to acquire A V Birla Group''s stake in Mangalore Refinery and Petrochemical Ltd (MRPL).
"CCEA, scheduled to meet tomorrow evening, will consider ONGC''s proposal to buy Aditya Birla Group''s 37.4 per cent stake in MRPL for Rs 59.43 crore at Rs two a share besides infusion of Rs 600 crore by way of additional capital," highly placed sources said here.
The CCEA would consider rescinding the 1987 tripartite MoU among Government of India, state-owned Hindustan Petroleum Corporation Ltd and Aditya Birla Group that established MRPL. Public Investment Board had last month cleared the acquisition.
Additional equity infusion and lenders converting part of their debt into equity as part of financial restructuring package for the loss-making refinery would give ONGC 51 per cent stake in MRPL, they said, adding on ONGC takeover, MRPL would be the only Indian refinery operating on equity crude.
At present, HPCL and Aditya Birla Group are equal partners in MRPL with 37.4 per cent stake each; the remaining 25.2 per cent is with the public. Post restructuring, HPCL''s stake would fall to 16.9 per cent. Lenders would have about 20.8 per cent while public holding would come down to 11.3 per cent.
CCEA nod for rescinding the MoU is necessary at the earliest as it would take six weeks to complete debt recast, necessary before March 31 to avoid part loans to MRPL being converted into NPA.