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Govt exempts oil & gas PSU mergers like HPCL-ONGC deal from CCI approval

In July, the CCEA approved the sale of the govt's 51.11% stake in oil refiner HPCL to the country's largest oil producer ONGC

Press Trust of India  |  New Delhi 

oil refinery, oil, gas
Representative image

Merger and acquisition deals involving public sector oil and gas companies have been exempted from seeking the Competition Commission's approval, says a notification.

The corporate affairs ministry's decision to exempt such deals from the ambit of the (CCI) comes against the backdrop of the proposed consolidation and stake purchases among state-owned oil and gas companies.

In July, the Cabinet Committee on Economic Affairs (CCEA) approved the sale of the government's 51.11 per cent stake in oil refiner to the country's largest oil producer

The ministry has said all cases of combinations involving the central public sector enterprises (CPSEs) operating in oil and gas sectors under the Petroleum Act, 1934, have been exempted from the approval requirement for five years.

The exemption will also be applicable to their "wholly- or partly-owned subsidiaries operating in the oil and gas sectors, from the application of the provisions of sections 5 and 6 of the (Competition) Act, for a period of five years", the notification issued on November 22 said.

Sections 5 and 6 pertain to combinations.

Under the norms, combinations or deals beyond a certain threshold compulsorily require approval from the

Earlier this year, the ministry exempted mergers of nationalised banks from seeking CCI's approval.

The regulator keeps a tab on anti-competitive practices across sectors to ensure fair practices are followed.

First Published: Thu, November 23 2017. 13:26 IST