Merger plan veers towards more state control

摘要

India is lining up state-controlled upstream firm ONGC to buy state-run refiner Hindustan Petroleum (HPCL), the latest chapter in Delhi's long-held ambition to create an integrated oil company to rival the majors. The country's BJP administration revealed plans on 1 February to create an oil champion by merging state-controlled upstream and downstream participants. But opposition from oil companies has prompted Delhi to scale back its proposal, to look to combine the portfolios of only two firms. The move would leave upstream company Oil India, refiners IOC and Bharat Petroleum and natural gas distributor Gail as stand-alone entities.