Search the Internet          Tips  Sites: Finance, Investment

IOC, ONGC to bid jointly for IPCL pie

State-run Indian Oil Corp is considering bidding jointly with state-run oil producer Oil and Natural Gas Corp Ltd for a controlling stake in Indian Petrochemicals Corp Ltd.

The government currently holds a 59.75 per cent stake in IPCL, the country's second biggest petrochemicals maker, and plans to sell a 26 per cent controlling stake in it under its privatisation programme.

"ONGC and IOC, we are talking to each other to join hands in bidding for IPCL," ONGC chairman Subir Raha told CNBC.

Three companies -- the No 1 oil refiner Indian Oil Corp, the nation's largest petrochemicals maker Reliance Industries Ltd and detergent maker Nirma Ltd -- are in the race to acquire control of IPCL.

Divestment secretary Pradip Baijal said on April 3 the government would wrap up its stake sale in IPCL within a month.

IPCL receives natural gas from ONGC and announced the completion of a new long-term supply agreement with it on Tuesday, clearing the way for the stake sale.

The gas was being sold at half the prevailing international price, an arrangement that was unlikely to be sustained because of the IPCL stake sale and deregulation of the Indian petroleum market.

ALSO READ:
The Divestment Development
The Rediff Budget Special
Money

Tell us what you think of this report