BPCL is down 4% at Rs.430 and IOC is also down 4%, going on to hit a new low at Rs.176 levels.

Lack of autonomy and how Govt wrests control to meet its own objectives is showing up once again. Carrying on with its objective of integrating energy firms, IOC and BPCL have to now buy 4.7% and 4.1% stake respectively in GAIL (India). Thanks to this, Govt is net a cool Rs.20,000 crore each from IOC and BPCL.

Last fiscal, ONGC bought out Govt’s 51.11% stake in HPCL for Rs.36,915 crore. HPCL is a subsidiary now of ONGC, continues to be listed as a separate entity while Govt indirectly keeps its hold on HPCL through ONGC.

That’s exactly how it will happen in GAIL too – it will change ownership from directly owned by the Govt to Govt owned companies. Just notional shift of ownership while Govt makes money and keeps its hold intact!