Indian Oil eyes marketing business of GAIL, say sources; stock slips 2%
Indian Oil is planning to submit its proposals to the Petroleum Ministry to integrate the marketing business of GAIL. A proposal will be submitted soon.
Indian Oil share price slipped over 2 per cent on Wednesday following news reports that the state-run oil firm is eyeing the marketing business arm of natural gas processing and distribution company GAIL India. IOC has been keen on acquiring the gas utility GAIL India to become a fully integrated energy company. The stock dipped as much as 2 per cent to Rs 170.20 on the BSE.
"In lieu of the changing conditions, IOC is planning to submit its proposals to the Petroleum Ministry to integrate the marketing business of GAIL. A proposal will be submitted soon," sources close to the development informed Zee Business.
According to the sources, GAIL's marketing business can make a better proposition for IOC and will be benefitted by the vast marketing network of the company.
IOC has already proposed Petroleum Ministry to Integrate itself with GAIL.
Talking about the chances of approval to IOC's plan, sources said, the government may split the marketing and pipeline business of GAIL as it doesn't want that the two business arms stay with one company.
The sources also informed that to protect the conflict of interest against the entry of new players in the market, the government has asked the Petroleum And Natural Gas Regulatory Board to look into the matter.
At present, the government owns 54.89 percent stakes in GAIL.
The source also said that the government may also move ahead with the ONGC-HPCL deal.