Thursday, June 21, 2007

Cabinet nod to Mittal stake buy in HPCL unit

Hindustan Petroleum Corporation shares were up 4.20 per cent at Rs 274 on the BSE, after the Cabinet Committee on Economic Affairs approved the proposal allowing steel baron Lakshmi Mittal to pick up 49 per cent stake in the state-run oil refiner’s Bhatinda unit.

The petroleum ministry had approached the Cabinet panel for project-specific approval to Mittal Investments Sarl for the stake sale as currently foreign direct investment in petroleum refineries of public sector units is allowed only up to 26%.

The current policy also restricts PSU holding to 26% in such projects and makes it mandatory for the balance 48% to be offered to public. END

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