State-owned exploration giant ONGC is considering a plan to dilute its stake in refiner HPCL, which it had acquired for Rs 36,915 crore, to reduce debt and fund exploration projects.
Sources said the company has debt of more than Rs 20,000 crore after buying out HPCL, while investments in exploration, its principal activity, have fallen rapidly.
“The call on selling stake in HPCL has to be taken by ONGC,” oil ministry officials said. Oil minister Dharmendra Pradhan had said last week that “we have a clear vision that the government has no business to be in business”.
