The Petroleum Ministry is not considering any proposal to merge 13 state-owned oil PSUs like ONGC ,IOC and GAIL to create a behemoth, Oil Minister Dharmendra Pradhan said today.
“Ministry is not considering any proposal (for merger). It is an idea which was reportedly mooted by a Director of a state-owned company and like all ideas have to be debated, we are debating it,” he said here. His ministry has 13 PSUs ranging from upstream oil producers like ONGC and Oil India to downstream oil refining and fuel marketing firms IOC, BPCL and HPCL to gas transporter GAIL India Ltd to engineering firm Engineers India Ltd . An idea was mooted to merge them to create a behemoth that cannot just compete globally but also withstand the oil price volatility by using profits refining business make in low oil prices to make up for losses in upstream and vice versa.