FIVE YEARS AFTER HPCL'S LEAVE, GOVT.WILL ACQUIRE SIZABLE INTEREST

Govt. had pledged Rs 30,000 Cr in capital support to state-run fuel retailers IOC, HPCL & BPCL to their energy transition and net-zero initiatives in Budget

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The government is slated to acquire a sizable interest in Hindustan Petroleum Corporation Ltd. (HPCL) five years after it left the company in an effort to inject equity into fuel retailers that lost money last year by selling gasoline and diesel at reduced prices, according to authorities.The government had pledged Rs 30,000 crore in capital support to state-run fuel retailers Indian Oil Corporation (IOC), HPCL, and Bharat Petroleum Corporation Ltd (BPCL) to support their energy transition and net-zero initiatives in the annual Budget for 2023–24 (April 2023 to March 2024 fiscal).

In June, the government asked IOC and BPCL to launch rights issues (to get the capital), and advised HPCL to make a preferential share allotment to the government. Board of IOC, earlier this month, approved raising up to Rs 22,000 crore by inviting existing shareholders to purchase additional new shares in the company (this type of issue gives existing shareholders securities called rights). The BPCL board too has approved raising up to Rs 18,000 crore through a rights issue, but the HPCL board is yet to approve the preferential issue.