The Government of India has entered into an agreement with ONGC today for the strategic sale of its 51.11% equity share-holding in HPCL at a consideration of Rs. 36,915 crore.
During the review in February 2016, the Prime Minister, Shri Narendra Modi underlined the need of efficient management of Government investments in Central Public Sector Enterprises (CPSEs). The Government accordingly expanded the approach from of disinvestment to investment and public asset management. As part of investment management strategy, Government decided to explore possibilities of consolidation, mergers and acquisitions within CPSE space. An announcement in this regard was made by the Finance Minister, Shri Arun Jaitley in his Budget Speech of 2017-18.
In line with the Budget announcement, ONGC proposed to acquire the Government of India’s existing 51.11% equity shareholding in Hindustan Petroleum