SME Times is powered by   
Search News
Just in:   • Trifecta Capital closes 2nd debt fund at Rs 1,025 cr  • ICICI Bank reduces home loan interest rate to 6.70%  • Higher infra spend ups 'Construction Equipment' volumes  • Ezstays completes seed round of funding  • Rewire to expand product portfolio post $20M fundraise 
Last updated: 17 Jan, 2021  

hpclTHMB.jpg ONGC's plan to merge MRPL with HPCL may have to wait till FY24

   Top Stories
» Feb exports down on container shortage: FIEO
» Industry should stress skill training: Naidu
» GVA growth more accurate than GDP numbers for FY21: DEA
» Forex reserves rise by $689 mn
» Champion industry, aluminium, looks for 5% RoDTEP rate to boost exports
SME Times News Bureau | 18 Jan, 2021
State-run oil and gas explorer ONGC's plan to complete the merger of its refining subsidiary MRPL with recently acquired HPCL to align its upstream and downstream operations into two verticals has got delayed.

The process is now expected to be completed by FY24 as ONGC has decided to consolidate its refining and petrochemicals business around MRPL first before pushing for its merger.

Sources said that the process of merging ONGC's two oil refining subsidiaries, Hindustan Petroleum Corp Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL), will start only after the company completes merging ONGC Mangalore Petrochemical Ltd (OMPL) with MRPL.

"The merger (HPCL and MRPL) under conservative assumptions could happen by FY24-end as the MRPL-OMPL merger has to happen first and that business should continue for five years with FY19-end as the effective date of their merger at the least," company officials privy to the development said.

Under the plan, MRPL may become a subsidiary of HPCL first. Under liberal assumptions, the merger could start in 1-2 years as OMPL gets merged with MRPL by then. OMPL has now become a 100 per cent subsidiary of MRPL.

The board of MRPL on October 19 last year had approved the acquisition of 49 per cent stake in OMPL from ONGC. This had paved the way for merging OMPL with MRPL. Once this is done, the next stage of merging MRPL with HPCL will begin.

OMPL, a subsidiary of MRPL, is a joint venture between ONGC and MRPL, set up for value addition of excess naphtha and aromatic streams available from the MRPL refinery. The complex is the largest single stream unit in Asia, producing 914 KTPA Para-xylene and 283 KTPA Benzene.

MRPL is a subsidiary of ONGC and schedule 'A' Miniratna, Central Public Sector Enterprise (CPSE), under the Ministry of Petroleum & Natural Gas. As on December 31, 2020, ONGC held 71.63 per cent and HPCL held 16.96 per cent stake in MRPL.
Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 06 Mar, 2021
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
» Resurgence in MSME credit(1)
» L&T secures Rs.3.44 billion project from Power Grid(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter