New Delhi, Feb. 20: The Cabinet Committee on Economic Affairs (CCEA) has given the final clearance for upstream oil giant ONGC to take over loss-making Mangalore Refineries and Petrochemicals Ltd (MRPL) with the acquisition of the 37.4 per cent stake of the Aditya Vikram Birla group.
ONGC will pick up the 2.97 crore shares owned by the Aditya Birla group at Rs 2 per share for a total sum of Rs 59.43 crore.
The proposal cleared today will allow ONGC to pump in another Rs 600 crore as additional capital to raise its equity holding in the company to 51 per cent. This will give the oil major management control of the state-of-the-art refinery built with Japanese expertise.
MRPL is a joint venture company between Hindustan Petroleum Corporation Ltd and the Aditya Birla group with each holding a 37.5 per cent stake. The remaining 25 per cent stake is held by the public.
Both the companies had agreed to the ONGC proposal, which had been cleared by the petroleum ministry. However, the finance ministry had held back the proposal for over four months before it was finally sent for CCEA approval.