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HPCL stake sale to ONGC: Panel led by FM Arun Jaitley to expedite deal

Pradhan reiterated that the integration of the two companies will be completed in the current FY

Reuters  |  New Delhi 

Union Petroleum Minister Dharmendra Pradhan
Union Petroleum Minister Dharmendra Pradhan

The Centre has decided to set up a panel headed by Finance Minister to expedite the sale of government's stake in refiner Hindustan Petroleum Corp (HPCL) to explorer Oil and Natural Gas Corp (ONGC), Oil Minister said.

The Union Cabinet last week decided to sell the government's 51.1 per cent stake in refiner and fuel retailer to oil producer

The panel "will help in taking quick decision with regard to the timing, price, terms and conditions and other related issues to the transaction," told lawmakers in a statement.

reiterated that the integration of the two companies will be completed in the current financial year (FY).

Post-acquisition by ONGC, can still retain its brand identity, he said.

The acquisition will help create a vertically integrated 'oil major' with a presence across the hydrocarbon chain.

ONGC's margins have been hit by falling oil prices while improved gross refining margins and rising local fuel sales have help boost profits of

"This will give an enhanced capacity to bear higher risks, take higher investment decisions and to neutralise the impact of global price volatility," said.

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