India's oil ministry plans to merge MRPL with HPCL

25 May 2023 CW Team

The idea of merging MRPL and HPCL was first floated five years ago, after ONGC acquired HPCL from the government. However, the plan made little progress until now. The ministry is now pushing for the merger, which is likely to be a share swap deal.

Under the proposed deal, HPCL would issue fresh shares to MRPL shareholders in exchange for their shares. There would be no cash outlay involved.

HPCL and ONGC are the promoters of MRPL. ONGC holds a 71.63% stake in MRPL, followed by HPCL at 16.96%, with the remaining 11.42% held by the public. The merger would significantly increase ONGC's stake in HPCL, from the current 54.9%.

The oil ministry is likely to seek cabinet approval for the merger proposal. The oil ministry, ONGC, HPCL and MRPL have all declined to comment on the matter.

The merger could take place as early as next year, but it could be delayed if the government decides to wait for the two-year cooling-off period between two successive mergers to expire. MRPL completed the merger of its subsidiary OMPL with itself last year.

The merger is aimed at consolidating most of ONGC's downstream assets under HPCL. This would likely lead to some tax gains, as HPCL, which has a vast retail network, sells much more fuel than it produces at its refineries. After the merger, it would have in-house access to MRPL's products. MRPL, on the other hand, doesn't have much of a domestic sales network and sells a substantial proportion of its products to retailers outside Karnataka, attracting central sales tax (CST). A merger could help cut CST outgo for MRPL.

However, the merger could also be a cause for concern among MRPL employees, as they could be transferred to other refineries of HPCL.

Also Read
Dwarka Expressway to be completed by April 2024
MPMRCL invites tender for Bhopal metro underground construction

The Indian government's oil ministry is drawing up a proposal to merge Mangalore Refinery and Petrochemicals (MRPL) into Hindustan Petroleum Corporation (HPCL), two listed subsidiaries of Oil and Natural Gas Corporation (ONGC). The idea of merging MRPL and HPCL was first floated five years ago, after ONGC acquired HPCL from the government. However, the plan made little progress until now. The ministry is now pushing for the merger, which is likely to be a share swap deal. Under the proposed deal, HPCL would issue fresh shares to MRPL shareholders in exchange for their shares. There would be no cash outlay involved. HPCL and ONGC are the promoters of MRPL. ONGC holds a 71.63% stake in MRPL, followed by HPCL at 16.96%, with the remaining 11.42% held by the public. The merger would significantly increase ONGC's stake in HPCL, from the current 54.9%. The oil ministry is likely to seek cabinet approval for the merger proposal. The oil ministry, ONGC, HPCL and MRPL have all declined to comment on the matter. The merger could take place as early as next year, but it could be delayed if the government decides to wait for the two-year cooling-off period between two successive mergers to expire. MRPL completed the merger of its subsidiary OMPL with itself last year. The merger is aimed at consolidating most of ONGC's downstream assets under HPCL. This would likely lead to some tax gains, as HPCL, which has a vast retail network, sells much more fuel than it produces at its refineries. After the merger, it would have in-house access to MRPL's products. MRPL, on the other hand, doesn't have much of a domestic sales network and sells a substantial proportion of its products to retailers outside Karnataka, attracting central sales tax (CST). A merger could help cut CST outgo for MRPL. However, the merger could also be a cause for concern among MRPL employees, as they could be transferred to other refineries of HPCL. Also Read Dwarka Expressway to be completed by April 2024 MPMRCL invites tender for Bhopal metro underground construction

Resources

09 Mar 2026

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Real Estate

09 Mar 2026

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Real Estate

09 Mar 2026

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..