Cabinet allows ONGC to buy out govt stake in refiner HPCL

New Delhi: The Cabinet on Wednesday approved sale of government's stake in Hindustan Petroleum Corp Ltd (HPCL) to India's largest oil producer ONGC for Rs 30,000 crore, a top government source said.

Oil and Natural Gas Corp (ONGC) will buy government's 51.11 per cent stake in HPCL but will not have to make an open offer as the government's holding is being transferred to another state-run firm and the ownership isn't changing.

HPCL will become a subsidiary of ONGC and will remain a listed company post the acquisition, the source said adding the board of the refining and marketing company will continue to remain in place.