India's oil ministry plans to merge MRPL with HPCL
OIL & GAS

India's oil ministry plans to merge MRPL with HPCL

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

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

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?