ONGC-HPCL deal should boost India's energy security efforts

HPCL's shareholders are disappointed that acquisition is unlikely to be accompanied by an open offer

The Union Cabinet’s decision to set in motion the creation of a mega public sector undertaking (PSU) in the oil and gas sector took a while in coming, but could go a long way in reducing inefficiencies across the sector and creating an entity better placed to compete globally for resources. This was necessary as while most Asian countries have just one national oil company integrated across the value chain, India has 18 PSU oil firms. The sale of the government’s 51 per cent equity in Hindustan Petroleum Corporation (HPCL), the country’s second largest fuel retailer, to Oil and Natural