ONGC to secure HPCL

New Delhi July 19: A reform may soon take place.Sources say that Cabinet would likely approve ONGC's proposal to acquire HPCL.The company has proposed to buy 51.1 % stake in the country's third largest refiner-retailer. Officials say that this deal is estimated at a cost price of RS 28000 crore.

The Government has earlier announced that it would set up an integrated Indian oil companies of global size by allowing mergers and acquisitions among existing state-run players. The government also hopes that disinvestment of Hindustan Petroleum Corporation would garner nearly 40 % of its targeted revenue for the fiscal year 2017-18.

Experts say that this move would help the company to increase the market share and also compete globally and more revenue would be generated.