Petroleum Minister Ram Naik said on Monday the terms and conditions of the strategic sale of Hindustan Petroleum Corporation Limited and public offer in Bharat Petroleum Corporation Limited would be worked out by a core group of secretaries on divestment at a meeting likely to be held on Wednesday.
In his first reaction after Divestment Minister Arun Shourie made a statement in the Lok Sabha on divestment in HPCL and BPCL, Naik expressed hope that all concerns expressed by his ministry would be considered by the group.
''I believe that public sector oil companies like ONGC (Oil and Natural Gas Corporation), OIL (Oil India Limited) and GAS (Gas Authority of India Limited) will also be allowed to bid for HPCL as no bar has been imposed on them,'' he said and added that only those public sector companies would be allowed which sought the petroleum ministry's permission.
Officials in the petroleum ministry, however, said various issues had to be resolved before privatising HPCL.
The main issues involved in HPCL strategic sale is investment in Bhatinda refinery and 37 per cent Mangalore Refineries and Petrochemicals Limited holding, for which ONGC has already shown keen interest to buy.
In Bhatinda refinery, about Rs 10,000 crore (Rs 100 billion) investment is required. Prime Minister Atal Bihari Vajpayee has promised the people of Punjab that the refinery would be set up there.
UNI
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