Hpcl Rules Out Ongc As Partner For Refinery Project

Public sector Hindustan Petroleum Corporation Limited (HPCL) has ruled out the possibility of accommodating Oil and Natural Gas Corporation (ONGC) as its joint venture partner for the six million tonne west coast refinery.

ONGC was keen on joining HPCL for the refinery after Oman Oil Company withdrew from the project because of the cash crunch faced by it. ONGC had approached HPCL and offered to take up the equity that had been earmarked for Oman Oil Company.

HPCL and Oman Oil Company were to have a 26 per cent equity each in the project. The balance was to be offered to the public.

HPCL is of the view that if 26 per cent of the equity, which was to go to Oman Oil Company, is now given to ONGC, the combined 52 per cent equity of the two public sector undertakings will make it a government company.

HPCL officials say this will tell on the autonomy of the joint venture, with the Centre having a major say in its working.