News Brief | September 2016
Ministry not considering merger of 13 oil PSUs | Pradhan
Petroleum Ministry is not considering any proposal to merge 13 state-owned oil PSUs like ONGC, IOC and GAIL to create a behemoth, Oil Minister Dharmendra Pradhan said. ´Ministry is not considering any proposal (for merger). It is an idea which was reportedly mooted by a Director of a state-owned company and like all ideas have to be debated, we are debating it,´ he said. His ministry has 13 PSUs ranging from upstream oil producers like ONGC and Oil India to downstream oil refining and fuel marketing firms IOC, BPCL and HPCL to gas transporter GAIL India Ltd to engineering firm Engineers India Ltd. An idea was mooted to merge them to create a behmoth that cannot just compete globally but also withstand the oil price volatility by using profits refining business make in low oil prices to make up for losses in upstream and vice a versa. Pradhan said it was just an idea and he is willing to look at an viable proposition.
Contact: Ministry of Petroleum and Natural Gas