Forget AG’s opinion: More differences on oil PSUs sale

Though the divestment of HPCL and BPCL was deferred, apparently due to lack of Attorney General’s opinion on whether the process needs ...

Though the divestment of HPCL and BPCL was deferred, apparently due to lack of Attorney General’s opinion on whether the process needs a Parliamentary nod, there are more issues in the process on which the ministries still differ.

According to Cabinet sources, both the petroleum ministry and the disinvestment ministry are yet to agree on more than one issue that is, quantum of equity to be divested, amount of equity to be offered to the employees of the two oil PSUs and of course allowing ONGC to bid for HPCL and tagging along the refineries (Bhatinda for HPCL and Bina for BPCL).

While the Cabinet note circulated by the disinvestment ministry has called for disinvesting 34 per cent equity in HPCL and also proposed a public offer of 38 per cent in BPCL (both in domestic and global/American markets), the petroleum ministry’s plea before the Cabinet calls for 24 per cent disinvestment in both.

Story continues below this ad

The petroleum ministry, under any circumstances, would not allow government equity to go down below 26 per cent in either, sources said.

Further, the disinvestment ministry is of the opinion that the government should offer 3 per cent equity to the employees. The finance ministry is in fact for a much lower share for the employees at 2 per cent. The petroleum ministry is of the opinion that the employees in both HPCL and BPCL should be offered nothing less than 5 per cent in the process of disinvestment. Of course, there is the old problem of allowing ONGC and other oil PSUs to bid for HPCL. Though, apart from ONGC, fertiliser giant Iffco and Gail had announced that they would be interested to be the strategic buyer of equity in HPCL, the petroleum ministry would press the case of ONGC.

According to sources, the special plea has to be made before the Cabinet for allowing PSUs and ONGC’s plan for upstream and downstream integration would certainly provide a case for the petroleum ministry to move the Cabinet with a special plea.

Further, the disinvestment ministry has favoured the idea of keeping aside the two refineries Bhatinda and Bina from the disinvestment process. Petroleum ministry has also taken a strong exception to this proposal. Sources said that the ministry is of the opinion that since around Rs 600 crore has already been invested in both the refineries by the two PSUs, they cannot be kept out of the process.

Story continues below this ad

Further, in case of HPCL it any way needs a refinery in the North to cater to North and Northeast.

The green signal to the disinvestment of the two oil PSUs would depend on how soon the government would be able to thrash these controversial issues. The Attorney General’s opinion alone would not solve anything, sources added.

H-1B $100,000 entry fee explained: Who pays, who’s exempt, and what’s still unclear?

Explained3 hr ago

The White House's decision to impose a $100,000 entry fee on H-1B visa holders has sparked worry among Indian tech workers and students. While uncertainties remain about its implementation and exemptions, major tech companies have cautioned employees against traveling. The policy could lead to a shift towards other visa categories and potentially change the STEM immigration pipeline.

View all shorts

Live Blog