Buzz on HPC becoming part of ONGC

ONGC doesn't have enough cash for this; will need to then raise it or sell holding in IOC, GAIL

There are unconfirmed reports that the government might ask Oil and Natural Gas Corporation (ONGC) to acquire Hindustan Petroleum Corporation (HPC), as part of an earlier stated aim to create a mega entity in the sector.

Any decision asking ONGC to buy out government equity in HPC would hinge on its ability to raise debt or sell its holding in other public sector undertakings, senior officials said on Monday.

"The ONGC surplus has come down to less than Rs 10,000 crore, not enough for such a buy-out. Besides, it will not want to spend its entire surplus and more on the acquisition,"