HPCL

crack-within:-rss-affiliate-sjp-opposes-sale-of-pses

Crack within: RSS-affiliate SJP opposes sale of PSEs

On one hand the Modi government is trying to infuse more liquidity into the market by trying to disinvest some of the PSUs on the other one of the affiliate organizations of the Rashtriya Swayamsevak Sangh – Swadeshi Jagran Manch -- is opposed to sale of PSEs including of the BPCL.

This is to recall that the Modi government had to surrender its reforms agenda particularly Land Acquisition bill, in the face of opposition from within the Sangh Parivar five year ago. The government is facing renewed resistance from SJM on privatising PSEs.

The government has proposed strategic sale in PSEs including in profit-making BPCL, to meet its disinvestment target, which would help shore up GST shortfalls and manage the mounting fiscal deficit. The SJM is of the view that the Modi government’s proposed strategic disinvestment of PSEs was an “imprudent business decision” and “against national interest”.

The SJM demanded a white paper on the previous disinvestment of HPCL, where ONGC acquired the equity. How has this benefited the operations of HPCL. Not just SJM, but the Congress, TMC and Left parties opposed privatisation and disinvestment of 28 PSEs.

On the strategic sale in BPCL, it said rumours are doing rounds that the Saudi Aramco is eyeing these assets. “This is not only unacceptable but also dangerous. The asset created with the national sentiments and hard work shouldn’t land up in the lap of the foreign oil companies — who see these assets only as a statistic to swell their valuation,” the SJM said.

02 Dec 2019
liquidity-crunch:-govt-to-offload-its-stake-in-bpcl-and-4-other-cos

Liquidity Crunch: Govt to offload its stake in BPCL and 4 other Cos

The government is constantly under pressure to pep up economic growth of the country and in one such move Cabinet Committee on Economic Affairs has approved disinvestment of BPCL, Shipping Corp, THDC India and NEEPCO and most of its stake in Container Corp.

The government decides to give up management control in these companies. The CCEA has also given an in-principle approval for the government to reduce stake in certain state-owned companies to below 51 per cent in some while retaining majority stake management control.

The government at the moment is racing against time to meet its divestment target of Rs 1.05 lakh crore for 2019-20 but the Centre hopes that disinvestment proceeds will make up for some of the revenue shortfall that is expected this year.

Finance Minister Nirmala Sitharaman said that privatisation of BPCL will be without the company’s equity shareholding of 61.65 per cent in Numaligarh Refinery in Assam. “The Numaligarh Refinery will be carved out of BCPL and will be taken over by another state-owned company,” said Sitharaman. The remaining 38.35 per cent stake is held by the Assam government (12.35 per cent) and Oil India (26 per cent).

The government will offload its entire 53.29 per cent stake in BPCL, 63.75 per cent stake in Shipping Corp, and 30.8 per cent stake in Container Corp.The centre owns 54.8 per cent stake in Concor.

21 Nov 2019
crack-within:-rss-affiliate-sjp-opposes-sale-of-pses

Crack within: RSS-affiliate SJP opposes sale of PSEs

By IndianMandarins 02 Dec 2019

On one hand the Modi government is trying to infuse more liquidity into the market by trying to disinvest some of the PSUs on the other one of the affiliate organizations of the Rashtriya Swayamsevak Sangh – Swadeshi Jagran Manch -- is opposed to sale of PSEs including of the BPCL.

This is to recall that the Modi government had to surrender its reforms agenda particularly Land Acquisition bill, in the face of opposition from within the Sangh Parivar five year ago. The government is facing renewed resistance from SJM on privatising PSEs.

The government has proposed strategic sale in PSEs including in profit-making BPCL, to meet its disinvestment target, which would help shore up GST shortfalls and manage the mounting fiscal deficit. The SJM is of the view that the Modi government’s proposed strategic disinvestment of PSEs was an “imprudent business decision” and “against national interest”.

The SJM demanded a white paper on the previous disinvestment of HPCL, where ONGC acquired the equity. How has this benefited the operations of HPCL. Not just SJM, but the Congress, TMC and Left parties opposed privatisation and disinvestment of 28 PSEs.

On the strategic sale in BPCL, it said rumours are doing rounds that the Saudi Aramco is eyeing these assets. “This is not only unacceptable but also dangerous. The asset created with the national sentiments and hard work shouldn’t land up in the lap of the foreign oil companies — who see these assets only as a statistic to swell their valuation,” the SJM said.

liquidity-crunch:-govt-to-offload-its-stake-in-bpcl-and-4-other-cos

Liquidity Crunch: Govt to offload its stake in BPCL and 4 other Cos

By IndianMandarins 21 Nov 2019

The government is constantly under pressure to pep up economic growth of the country and in one such move Cabinet Committee on Economic Affairs has approved disinvestment of BPCL, Shipping Corp, THDC India and NEEPCO and most of its stake in Container Corp.

The government decides to give up management control in these companies. The CCEA has also given an in-principle approval for the government to reduce stake in certain state-owned companies to below 51 per cent in some while retaining majority stake management control.

The government at the moment is racing against time to meet its divestment target of Rs 1.05 lakh crore for 2019-20 but the Centre hopes that disinvestment proceeds will make up for some of the revenue shortfall that is expected this year.

Finance Minister Nirmala Sitharaman said that privatisation of BPCL will be without the company’s equity shareholding of 61.65 per cent in Numaligarh Refinery in Assam. “The Numaligarh Refinery will be carved out of BCPL and will be taken over by another state-owned company,” said Sitharaman. The remaining 38.35 per cent stake is held by the Assam government (12.35 per cent) and Oil India (26 per cent).

The government will offload its entire 53.29 per cent stake in BPCL, 63.75 per cent stake in Shipping Corp, and 30.8 per cent stake in Container Corp.The centre owns 54.8 per cent stake in Concor.

oil-psus:-centre-plans-cutting-stake-in-ioc-to-below-51%

Oil PSUs: Centre plans cutting stake in IOC to below 51%

By IndianMandarins 15 Nov 2019

The Centre is planning to cut its stake in the IOC below 51% to become a minority shareholder which currently holds 51.5 per cent in the oil major. To boost economic growth, the Central government has been on a divestment spree and has been considering cutting stake in several companies. IOC is the third oil company in which the government plans to cut it stakes.

Besides IOC, ONGC is looking to sell its stake in the recently-acquired refiner HPCL to a strategic investor, possibly an overseas oil company, to regain debt-free status of the company existing prior to the expensive buy.

The plan for HPCL follows the government's go ahead to invite a strategic investor for BPCL where the Centre owns 53 per cent stake. The divestment is important from the fiscal math perspective.

India's fiscal deficit at the halfway mark in 2019-20 stood at 92.6% of budgeted estimates, lower than 95.3% in April-September, 2018-19, helped by transfers from the RBI. With muted tax revenues, the government will have to undertake spending cuts and divest to achieve FY20 fiscal target of 3.3 per cent of GDP. 

hpcl:-misri-appointed-director,-marketing

HPCL: Misri appointed Director, Marketing

By IndianMandarins 15 Oct 2019

Rakesh Misri (ED, HPCL) appointed to the post of Director (Marketing), Hindustan Petroleum Corporation Limited till his retirement i.e. 31.03.2022. PESB had selected him for the post on 04.07.2019.

hpcl's-omission-of-ongc-as-promoter-baffles-observers

HPCL's omission of ONGC as promoter baffles observers

By IndianMandarins 23 Jul 2019

For the latest quarter ended June, HPCL has listed ONGC merely as a public shareholder and not a promoter. Under the promoter/promoter group category, the company has dropped the name of even the President of India who is not shown as holding any shares in HPCL now. Ever since the company's merger with ONGC in January 2018, except the latest June quarter, HPCL has been showing in the regulatory filings the President of India as the promoter.

 

HPCL's omission of ONGC as the company's promoter in the June regulatory filings has baffled PSU observers. No one has a clue how the government wishes to sort out the problem.

 

Further, MK Surana continues to hold the title of Chairman and Managing Director, although PSU corporate governance structure provides a group with just one chairman. Besides, subsidiaries of a group are provided to be run by managing directors and CEOs.

For instance, ONGC's overseas subsidiary, ONGC Videsh, is led by a MD and CEO. Even its listed refinery subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL), no different from HPCL, is also headed by a MD and CEO. ONGC Chairman is the Chairman of the board of both the companies.

hpcl:-misri-selected-for-director-(marketing)

HPCL: Misri selected for Director (Marketing)

By IndianMandarins 04 Jul 2019

The public-sector headhunter on Thursday selected Rakesh Misri (ED, HPCL) for the post of Director (Marketing), Hindustan Petroleum Corporation Limited (HPCL). Altogether, ten candidates appeared before the selection board for interview.

 

The post was advertised December last year, over six months ahead of the retirement of S Jeyakrishnan, the outgoing Director (Marketing). The post fell vacant on June 30, 2019.

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