Govt may step into Essar Oil imbroglio

Public sector firm Indian Oil had evinced its interest to pick up 26 per cent stake in the project but it has not reached any final conclusion. Earlier, after a negative feasibility study by SBI Caps, Bharat Petroleum Corporation had backed out from the project. “We are working on a solution… we are talking to all the parties concerned, including the FIs and present promoters,” he said.

The financial institutions, led by ICICI, have also approached various public sector oil companies to take over the jinxed project. The company on its own talked to Oman Oil which is also dilly-dallying on taking over the project. Due to this constant uncertainty, the company’s scrip has crashed to Rs 8.80 on the BSE on Monday.

In order to raise funds for its refinery, Essar Oil is also planning to sell off its oil rigs to foreign companies. These oil rigs are deployed in various Gulf countries.

Ponnuswami said due to huge demand-supply gap, India requires more refineries and the marketing tie up of Indian Oil with private refineries can be upgraded to equity tie-up. On diesel price hike, he said the with OPEC nations increasing production, oil prices have stabilised and by July his ministry will take up a decision on revising the prices.

On disinvestment of Indian Oil, Ponnuswamy said the matter is currently being handled by the Disinvestment Ministry and Cabinet will take a decision by middle of next month on the modalities of the issue. “The government is confident of launching the issue before the end of current financial,” he added.

On availability of LPG, the minister said by next year, the entire back-log of LPG waiting list would be wiped off and LPG would be available off the shelf. The minister said IOC’s nine million tonne Nagapattinam refinery in Tamil Nadu would be commissioned irrespective of the fact that Nagarjuna Oil is also setting up a 6 MMT project near Cuddalore.