Oil and Natural Gas Corp (ONGC), India's biggest oil and gas producer, last month completed the acquisition of HPCL for Rs 36,915 crore.
After this takeover, ONGC has two refining subsidiaries - HPCL and MRPL.
However, no discussion has yet been initiated on the merger, he said, adding that the board of ONGC, HPCL and MRPL would consider such a proposal once discussions and modalities of the merger have been worked out.
"I believve that if there is a value (in the merger), it should be created at the earliest," he said.
For one, HPCL sells more petroleum product than it produces and bringing MRPL's 15 million tonne a year refinery under the fold would help bridge the shortfall.
Also, there can be synergies in crude oil procurement as well as in optimising refinery set-up.
ONGC plans to maintain HPCL as an independent listed company under whom all its downstream units can be consolidated.
While ONGC holds 71.63 per cent stake in MRPL, HPCL has 16.96 per cent.
After ONGC completed acquisition of the government's 51.11 per cent shares, HPCL has become its subsidiary.
HPCL has added 23.8 million tonne of annual oil refining capacity to ONGC's portfolio. This together with 15 million tonne refinery of MRPL will create India's second-biggest state-owned oil refiner after Indian Oil Corp (IOC).