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

NTPC to foray into wind power

After ONGC, HPCL and Tata Power, the country's biggest electricity generator NTPC Ltd now plans to foray into wind power with an investment of more than Rs 1,200 crore as it seeks to diversify into renewable energy.

The navratna PSU, which has an installed capacity of more than 26,000 MW entirely on coal or gas, has been looking to diversify into other energy sources and is already working on hydroelectric projects, besides a few small biomass plants.

NTPC's proposed venture comes at a time when a number of energy companies in India and abroad have already forayed into renewables, particularly wind and solar. India is the world's fourth largest wind energy producer with an installed capacity of more than 7,000 MW, only behind Germany, Spain and the US.

Read more in The Economic Times article.

Gail, HPCL in JV for Rajasthan city gas projects

Gail India and Hindustan Petroleum Corporation (HPCL) yesterday signed a joint venture (JV) agreement for city gas distribution projects in Rajasthan. The JV will have 22.5% equity holding each by Gail and HPCL, 5% by the Rajasthan government or its nominee and 50% by strategic investors/public/financial institutions.

According to an official release issued by Gail to the BSE today, the JV will take up city gas distribution projects in Rajasthan and enable use of compressed natural gas (CNG) and piped natural gas (PNG) in cities of Rajasthan for automotive and domestic use. The JV will start its operations in Kota. Gail's Vijaipur–Kota pipeline is already operational and the Kota city gas project will source its gas though this pipeline.

Speaking on the occasion, U D Choubey, CMD, Gail said: City gas distribution will be the next high growth area in gas markets in future. It is going to be a very competitive business and the two companies need to move fast and expedite the implementation of the project to ensure that the JV fully exploits the first mover advantage.

This will be the third city gas distribution JV by the companies after Bhagyanagar Gas and Avantika Gas for projects in Andhra Pradesh and Madhya Pradesh respectively.