Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

State-owned Oil and Natural Gas Corp (ONGC) is keen to acquire India's third-biggest fuel retailer <keyword id="6362419" type="CITY" weightage="20" keywordseo="HPCL">HPCL</keyword> in a Rs 42,254 crore deal after finding <keyword id="75662" type="CITY" weightage="100" keywordseo="Bharat-Petroleum">Bharat Petroleum</keyword> Corp Ltd (BPCL) too expensive to buy, according to a news report by PTI. Following up on Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>'s Budget announcement of creating an integrated oil company, ONGC evaluated options of acquiring either <keyword id="170674" type="COMPANY" weightage="20" keywordseo="Hindustan-Petroleum-Corp-Ltd">Hindustan Petroleum Corp Ltd</keyword> (HPCL) or BPCL - the two downstream oil refining and fuel marketing companies. While acquiring either one of them made a lot of business sense, ONGC found the nation's second-biggest fuel retailer, BPCL too expensive, sources privy to the development said. BPCL has a market cap of Rs 1,01,738 crore and buying government's 54.93 per cent would along have entailed an outgo of Rs 55,885 crore. So, ONGC is in favour of acquiring HPCL, which has a market cap of Rs 54,797 crore and buying government's entire 51.11 per cent stake would entail an outgo of Rs 28,006 crore. Another Rs 14,000 crore or so would be required in case open offer has to be made. Sources said while initially the government was looking at creating an integrated oil company through merge of an oil producer with a refiner, the idea was dropped for the fear of not repeating of the Air India-Indian Airlines merger. Similar differences in work culture and ethos prevail in upstream and downstream firms and so the exercise under consideration now is to only help government mop up resources and HPCL would become a mere subsidiary of ONGC. ONGC already has a refining subsidiary in Mangalore Refinery and Petrochemcials Ltd (MPRL). Sources said an open offer to buy another 26 per cent stake from other shareholders of HPCL would at current price cost ONGC another Rs 14,247 crore. As per Sebi's takeover code, if a company acquires more than 25 per cent in another listed company, it has to make an open offer to buy at least 26 per cent more in the target firm. Some reports have suggested that ONGC buying government stake in HPCL may not trigger an open-offer rule as the government's holding is being transferred to another state-run firm and the ownership is not going to change. But sources said that way back in February 2002, state- owned <keyword id="59622" type="CITY" weightage="20" keywordseo="Indian-Oil-Corp">Indian Oil Corp</keyword> (<keyword id="6354733" type="ORGANIZATION" weightage="20" keywordseo="IOC">IOC</keyword>) had acquired government's 33.58 per cent stake in fuel retailer IBP Co Ltd for Rs 1,153.68 crore and had to make an open offer for additional shares. Both IOC and IBP were government owned companies. Sources said the oil ministry and ONGC may try and seek exemption from the open offer to keep the acquisition cost low. ONGC has cash reserve of Rs 13,014 crore and to fund the government stake acquisition in HPCL it will have to borrow at least Rs 18,000 crore, they said. If the open offer is made, additional borrowings would have to be done. There are only six major companies in the oil sector - ONGC and Oil India Ltd being the oil producers, Indian Oil Corp (IOC), HPCL and BPCL in refinery business and GAIL in midstream gas transportation business. The rest such as ONGC Videsh, Chennai Petroleum Corp (CPCL), Numaligarh Refinery Ltd and MRPL are already subsidiaries of one of these six PSUs. Sources said the options were very limited and ONGC chose HPCL over BPCL. HPCL will add 23.8 million tonnes of annual oil refining capacity to ONGC's portfolio, making it the third-largest refiner in the country after IOC and Reliance Industries. ONGC already is majority owner of MRPL, which has a 15- million tons refinery. Sources said ONGC buying HPCL will require two sets of Cabinet approval - one where the government approves sale of its all or part of its 51.11 per cent stake to ONGC, and the other for allowing ONGC to spend the money on stake buy.

Bharat Petroleum is too expensive; ONGC plans to buy Hindustan Petroleum

New Delhi, Apr 20 () State-owned oil firms will resume as many as 511 projects involving over Rs 42,000 crore of investment with immediate effect as the country partially exited from an unprecedented nationwide lockdown on Monday.Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC), GAIL, Oil India Ltd and six other public sector firms identified projects that either in rural areas or have in situ labour for the resumption of work, oil ministry sources said.The government had last week allowed makers of information technology hardware, farmers and industries in rural areas to resume operations as it looked to revive the economy that got stalled because of the outbreak of coronavirus pandemic.As many as 319 projects with these 10 PSUs are completely in rural areas and resuming work on them will not be much of a problem. Another 192 projects are within municipal limits but have in situ labour, they said.In FY2020-21, these projects would involve an expenditure of over Rs 42,000 crore.The restarting of these projects that spread from oil and gas exploration and development work to refinery jobs, gas pipeline laying and city gas distribution network expansion, will generate around 7 crore man-days of employment, they said.These projects include 196 projects of IOC, 168 of Bharat Petroleum Corp Ltd (BPCL), 57 of Hindustan Petroleum Corp Ltd (HPCL), 32 of GAIL and 26 projects of ONGC.The sources said these projects involving refinery, exploration and production, marketing infrastructure, pipeline and city gas distribution are expected to generate Rs 2,210 crore of payout in the first month. Out of this, Rs 266 crore will be paid to labour.These projects, they said, are in line with the Ministry of Home Affairs guidelines and are assessed on the ground of manpower availability and other municipal restrictions. ANZ BAL

Oil PSUs to re-start over Rs 42,000 cr of projects as lockdown restrictions ease

New Delhi, Apr 1 () India's top oil firm IOC has declared force majeure on crude purchases from four of its biggest suppliers - Saudi Arabia, Iraq, UAE and Kuwait - as refinery run rates have been cut down in view of plummeting fuel demand following a nationwide lockdown.Sources said IOC has asked the four suppliers to defer some of the volumes they were to deliver in April.The company has reduced processing at its refineries by at least one-fourth as shutting down of businesses, suspension of flights and most vehicles staying off road due to the 21-day nationwide lockdown has led to drastic fall in demand.A force majeure event refers to the occurrence of an event that is outside the reasonable control of a party and which prevents that party from performing its obligations under a contract.The sources said petrol sales fell 8 per cent in March compared to February, while diesel demand was down 16 per cent. Aviation turbine fuel (ATF) sales fell 20 per cent.The government declared a 21-day nationwide lockdown beginning March 25 to curb spread of coronavirus.The sources said with demand falling, crude intake at refineries has been cut.Both crude and finished petroleum product tanks are full to the brim and refineries cannot take more crude.While Adnoc of UAE has shown favourable intent to defer supplies, Saudi Arabia and Iraq are yet to respond to IOC request, they said.Besides IOC, Hindustan Petroleum Corp Ltd (HPCL) too has declared force majeure on Iraqi supplies.Also, Mangalore Refinery and Petrochemicals Ltd (MRPL) has shut a third of its 15 million tonnes a year refinery and has declared force majeure with all suppliers. ANZ BAL

IOC declares force majeure on oil purchases from Saudi, UAE, Iraq, Kuwait

New Delhi, Feb 5 () Hindustan Petroleum Corp Ltd (HPCL) on Wednesday reported trebling of net profit in December quarter as inventory gains made up for lower refinery margins.Net profit in October-December at Rs 747 crore was higher than net profit of Rs 248 crore in the same period a year back, HPCL Chairman and Managing Director Mukesk K Surana told reporters here."In Q3 of the last fiscal we had an inventory loss of Rs 3,465 crore. As compared, we made an inventory gain of Rs 343 crore," he said, adding the inventory gains were partly offset by lower exchange gains.HPCL had a foreign exchange gain of Rs 82 crore in the December quarter as compared to a forex gain of Rs 557 crore a year back, he said.A company records inventory gain when it buys raw material (crude oil) at a particular price but by the time it is able to process and convert it into fuel, international oil prices have gone up. Since fuel prices are benchmarked to international rates, inventory gains are booked. Inventory losses are booked when the reverse happens.The company earned USD 1.79 on turning every barrel of crude oil into fuel in Q3 as compared to a gross refining margin of USD 3.72 per barrel a year back."The lower GRM is primarily due to lower cracks of fuel oil and LPG and planned shutdown of secondary units at Visakh refinery," he said.Sales was also lower at Rs 74,288 crore in October-December as against turnover of Rs 76,884 crore. ANZ BALBAL

HPCL net trebles on inventory gains

New Delhi, Feb 27 () Hindustan Petroleum Corp Ltd (HPCL) on Thursday said it has acquired 17.28 per cent stake in Petronet MHB Ltd, a firm that owns a petroleum product pipeline at Mangalore, for Rs 185.38 crore. HPCL and its parent, Oil and Natural Gas Corp (ONGC), presently hold 32.72 per cent stake each in the company that transports petroleum products. In a regulatory filing, HPCL said Petronet MHB Ltd had a networth of Rs 796.30 crore as of March 31, 2019. "The acquisition will open up possible opportunities for synergy, better cost economics and revenue maximization," HPCL said, adding that no governmental or regulatory approvals are required for the acquisition. The acquisition is expected to be completed by March 31. "The company has entered into a share purchase agreement dated February 27, 2020, with consortium of 8 nationalised banks, who hold equity shares in Petronet MHB Ltd, for acquisition of 9.48 crore equity shares aggregating ot 17.28 per cent of the paid-up equity share capital at a price of Rs 19.55 per share," HPCL said. "Post-acquisition the shareholding of HPCL in Petronet MHB will be about 49.996 per cent," it added. Petronet MHB Ltd was incorporated on July 31, 1998 on a common carrier principle to provide petroleum product transportation facility from Mangalore refinery to the oil marketing company terminals at Hassan and Devangonthi (Bangalore). ONGC owns 51.11 per cent stake in HPCL. Petronet MHB had revenue from operation of Rs 128.33 crore in 2016-17, which rose to Rs 130.89 crore in 2017-18 and Rs 158.44 crore in the following year. In a separate filing, Bank of Baroda said it sold its 4.90 per cent stake in Petronet MHB for Rs 52.56 crore. ANZ RVK

HPCL buys 17.28 pc stake in Petronet MHB for Rs 185.38 cr

New Delhi, Feb 14 () State-owned Oil and Natural Gas Corp (ONGC) on Friday reported halving of its December quarter net profit after it faced the double whammy of falling oil and gas prices and a drop in production. Standalone net profit in October-December at Rs 4,152 crore was 49.8 per cent lower than Rs 8,263 crore net profit in the same period of the previous fiscal, the company said in a statement. The firm got 10 per cent lower price at USD 59.73 for the crude oil it produced and 4 per cent lower rate for natural gas at USD 3.23 per million British thermal unit. Lower oil prices led to revenues dropping 14.4 per cent to Rs 23,710 crore in the third quarter of current fiscal. ONGC said oil production was 1 per cent lower at 4.82 million tonnes in the October-December quarter, while gas output saw 8.4 per cent reduction at 5.875 billion cubic metres. It did not give reasons for the drop in production. Most of the fields it operates are old and are well past their prime. A natural decline in production has set in fields such as Mumbai High and Bassein in western offshore. ONGC said it has made 10 discoveries of oil and gas in the current fiscal. These include six new prospects and four extensions of previous finds. The discoveries include oil and gas finds in Mumbai High and a gas discovery in KG Onland block. For April-December, the company reported a 28 per cent drop in net profit to Rs 16,319 crore and a near 10 per cent fall in revenues to Rs 82,896 crore. Consolidated profit, after including earnings of listed subsidiaries such as Hindustan Petroleum Corp Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd, was 43.7 per cent lower at Rs 5,384 crore in October-December and 35 per cent lower at Rs 17,913 crore in April-December 2019. Revenues were 6.7 per cent lower at Rs 109,443 crore in the third quarter and 6 per cent lower at Rs 3,20,512 crore in the first nine months of current fiscal. Both HPCL and MRPL are listed and their earnings are reported separately. ANZ ABM

ONGC Q3 net halves on fall in oil, gas prices, output

New Delhi, Jul 5 () Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) plans to increase its network of aviation fuel stations by 50 per cent as it looks to capture greater market share in the business currently controlled by public sector oil retailing firms. In its latest annual report, RIL said the double-digit growth observed over 52 consecutive months might have been stalled due to the COVID-19 pandemic, but India continues to be one of the fastest growing aviation markets in the world for the fifth consecutive year. RIL, which operates the world's largest single location oil refining complex, plans to capture this opportunity through increased presence at airports to refuel airplanes. Air-passenger traffic in India rose 9 per cent even in February after the Indian carriers recouped to full capacity that was lowered following the closure of a major domestic carrier in the first few months of financial year 2019-20 (April 2019 to March 2020) as well as disruptions at Mumbai airport owing to construction and maintenance, it said. Following the COVID-19 pandemic, while travel restrictions were being imposed elsewhere, India was largely unaffected till the end of March 2020, before the sharp escalation in travel bans globally and lockdowns impacted India's aviation sector too. "On account of its network strength, cost competitiveness, industry leading technology and best-in-class service standards, RIL improved its volume share in the domestic market," according to the annual report. Reliance Aviation has the highest market share in 20 per cent of the operating airports. "RIL is looking to increase its network to 45 locations as against 30 at the end of FY 2019-20 and is well geared to benefit with the growth in the Indian aviation market," it said. India currently has 256 aviation fuel stations, with state-owned Indian Oil Corp (IOC) owning 119 of them. Bharat Petroleum Corp Ltd (BPCL) has 61 and Hindustan Petroleum Corp Ltd (HPCL) the remaining 44. RIL is the largest private aviation fuel retailer with 31 stations, according to the latest data from the oil ministry. In comparison, RIL's auto fuel retailing network is very small. Out of 69,392 petrol pumps in the country, RIL operates 1,398. IOC has the highest number of outlets at 29,208, followed by HPCL with 16,557 and BPCL with 16,309 petrol pumps. Russia's Rosneft-backed Nayara Energy is the biggest private auto fuel retailer with 5,720 petrol pumps. RIL said it registered 9.8 per cent growth in retail diesel sales and 14.7 per cent in retail petrol volume as compared with 1.5 per cent and 6.3 per cent for industry, respectively. During financial year 2019-20, RIL registered over 10 per cent growth in average outlet sales volume. On bulk diesel, RIL said it registered a volume growth of 10.8 per cent, increasing market share to 8.8 per cent, despite expected demand contraction and margin pressure. Direct sales volume would be driven by continued volume growth from railways and sourcing higher volume shares in State Transport Units (STUs), it said. ANZ RVK

Reliance plans to up aviation fuel stations by 50 pc

(Eds: Adding ONGC acquisition) New Delhi, Feb 27 () State-owned Oil and Natural Gas Corp (ONGC) and its subsidiary Hindustan Petroleum Corp Ltd (HPCL) have bought out lenders in Petronet MHB Ltd, the firm that owns a petroleum product pipeline in Mangalore, for about Rs 371 crore. A consortium of eight public sector banks held 34.56 per cent stake in Petronet MHB Ltd, where ONGC and HPCL held 32.72 per cent apiece. ONGC and HPCL bought 17.28 per cent stake each from lenders, the firms said in separate but almost identical regulatory filings. The two firms paid Rs 185.38 crore each for acquiring 17.28 per cent more share in Petronet MHB Ltd. The now hold 49.996 per cent each in the company that transports petroleum products from Mangalore Refinery. Mangalore Refinery and Petrochemicals Ltd (MRPL) is also a subsidary of ONGC. MRPL uses the pipeline of Petronet MHB for moving fuel. In a regulatory filings, ONGC and HPCL said Petronet MHB Ltd had a networth of Rs 796.30 crore as of March 31, 2019. "The acquisition will open up possible opportunities for synergy, better cost economics and revenue maximisation," they said, adding that no governmental or regulatory approvals are required for the acquisition. The acquisition is expected to be completed by March 31. "The company has entered into a share purchase agreement dated February 27, 2020, with consortium of 8 nationalised banks, who hold equity shares in Petronet MHB Ltd, for acquisition of 9.48 crore equity shares aggregating ot 17.28 per cent of the paid-up equity share capital at a price of Rs 19.55 per share," HPCL said. ONGC also posted a similarly worded filing shortly after HPCL disclosure. "Post-acquisition the shareholding of HPCL in Petronet MHB will be about 49.996 per cent," HPCL added. ONGC said it hold 49.996 per cent stake in Petronet MHB after the acquisition. Petronet MHB Ltd was incorporated on July 31, 1998 on a common carrier principle to provide petroleum product transportation facility from Mangalore refinery to the oil marketing company terminals at Hassan and Devangonthi (Bangalore). ONGC owns 51.11 per cent stake in HPCL. Petronet MHB had revenue from operation of Rs 128.33 crore in 2016-17, which rose to Rs 130.89 crore in 2017-18 and Rs 158.44 crore in the following year. In a separate filing, Bank of Baroda said it sold its 4.90 per cent stake in Petronet MHB for Rs 52.56 crore. ANZ MKJ

ONGC, HPCL buy out bankers in Petronet MHB for Rs 371 cr

New Delhi, Apr 3 () PSU oil firms are delivering an average over 60 lakh LPG cylinders daily to consumers during the nationwide lockdown to feed household cooking needs, Petroleum Minister Dharmendra Pradhan said on Friday as he pushed companies to prepare to deliver three free cylinders to over 8 crore Ujjwala beneficiaries. Pradhan interacted with dozens of district nodal officers of Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) over video-conferencing to access the distribution of LPG cylinders in districts following the coronavirus outbreak and the subsequent 21-day nationwide lockdown, an official statement said here. The district nodal officers (DNOs) of oil marketing companies are responsible for LPG deliveries in their assigned areas. "Appreciating the efforts of DNOs and their teams, Pradhan said that in this time of unprecedented crisis, the LPG teams of the companies have risen to the occasion and delivered the cylinders on time despite so many restrictions and health hazards," the statement said. He said that due to the COVID-19 crisis and the nationwide lockdown, the consumption and demand of cylinders have gone up. "The OMCs (oil marketing companies) are delivering on an average 50-60 lakh cylinders daily, and are playing an important role in the national fight against Covid-19," it said. Pradhan asked the three oil marketing companies to now gear up to provide 3 free cylinders to over 8 crore Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries over the next 3 months. He asserted that 15 port terminals, 195 LPG bottling plants and the transportation network are currently operating everyday despite lockdown, ensuring sufficient availability and uninterrupted supplies of LPG products in the country. The government had last month announced free cooking gas to PMUY beneficiaries, who are poor women who got free cooking gas connections since 2016, as part of the economic stimulus to deal with the lockdown. Three 14.2-kg LPG cylinders come together with free foodgrain and cash for the poor. Pradhan said advance funds are being provided to the LPG distributors for releasing the first free cylinder, and the scheme should be implemented efficiently so that poor sections of the society do not suffer in this time of difficulty. "The minister also called the OMCs to help the migrants and provide food to them," the statement said. "He called upon the DNOs to generate awareness among the masses and all the stakeholders about health precautions and social distancing." The DNOs reported that after the initial hiccups, things have settled down. The panic booking of cylinders, which was noticed in the initial few days of the lockdown, has stopped, the statement said adding that the waiting period of the cylinder delivery has come down. DNOs, according to the statement, said the announcement of the special ex-gratia of Rs 5 lakh for LPG delivery boys and others involved in the supply chain in case of a casualty due to COVID-19, has boosted the morale of the staff at the field level. ANZ HRS

Oil firms delivering over 60 lakh LPG cylinders daily during lockdown: Pradhan

New Delhi, Nov 20 () Moody's Investors Service on Wednesday said it has assigned a 'Baa1' rating to the proposed senior unsecured notes to be issued by Oil and Natural Gas Corp under its USD 2 billion medium-term note program.
 The outlook on the rating is negative, Moody's said in a statement.
 "The notes' rating is in line with ONGC's Baa1 issuer rating, which is in turn primarily driven by its standalone credit profile as captured by the company's baa1 Baseline Credit Assessment (BCA)," says Vikas Halan, a Moody's Senior Vice President.
 The rating reflects ONGC's position as the largest integrated oil and gas company in India with significant reserves, production and crude distillation capacity as also its substantial operating cash flow generation capacity.
 It also factors the firm's solid credit metrics that have improved but remain constrained by volatile - although range-bound - oil prices and high shareholder returns.
 At the same time, Moody's expected that ONGC will not be asked to share fuel subsidies, as long as oil prices stay below USD 70 per barrel.
 "ONGC's issuer rating also incorporates the company's high likelihood of extraordinary support from and very high dependence on the Government of India, in times of need. However, this assumption of government support has not resulted in any rating uplift, as the sovereign's rating is below ONGC's BCA," it said.
 Given ONGC's strong credit metrics and status as a government-owned company, it enjoys strong access to debt capital markets and has substantial financial flexibility through equity stakes in Indian Oil Corp and GAIL India, which together were valued at about Rs 21,000 crore as on November 14, 2019.
 Moody's ratings for ONGC are based on the full consolidation of Hindustan Petroleum Corp Ltd (HPCL) which includes the full consolidation of HPCL's 49 per cent-owned joint venture, HPCL-Mittal Energy.
 The government owns 62.98 per cent of ONGC's equity and has the ability to appoint all of its board of directors.
 "The negative outlook on ONGC is in line with the negative outlook on the Government of India's rating and reflects Moody's view that ONGC's ratings will be downgraded if India's sovereign rating is downgraded to Baa3 from Baa2," Moody's said.
 "Given the negative outlook, an upgrade is unlikely. The outlook will return to stable if the outlook on the sovereign rating moves to stable."
 ONGC's ratings may experience downward pressure if the sovereign rating is downgraded, ONGC increases its pace of acquisitions such that it results in higher business risk and a deterioration in its credit metrics, or oil prices decline on a sustained basis resulting in weak cash flow generation and a deterioration in ONGC's credit metrics, it added. ANZ ANU

Moody's assigns Baa1 rating to ONGC's proposed senior unsecured notes

New Delhi, Feb 2 () ONGC, IOC and other oil PSUs will invest over Rs 98,521 crore in the coming fiscal starting April 1 in exploring for oil and gas, refineries, petrochemicals and laying pipelines to meet needs of the world's fastest-growing energy consuming nation.
 The investment proposed in 2020-21 is almost 4 per cent higher than Rs 94,974 crore spending by the state-owned oil firms in the current fiscal year that ends on March 31, according to Budget 2020-21 documents.
 Oil and Natural Gas Corp (ONGC) leads the pack with a 19 per cent rise in its capital spending at Rs 32,501 crore. The company is investing in finding new reserves of oil and gas and bringing to production discoveries it has already made. It is developing discoveries on both east and west coast of the country.
 The top oil producer's overseas arm, ONGC Videsh Ltd (OVL) will invest almost 10 per cent more at Rs 7,235 crore in oil and gas operations abroad.
 Indian Oil Corp (IOC), the country's top oil refiner, will see a 17.4 per cent rise in spending to Rs 26,233 crore with the bulk of it in expansion and upgrade of its seven refineries that produce fuel.
 IOC will also see investment in petrochemical business almost double to Rs 3,387.5 crore while its exploration spends quadruples to Rs 2,150 crore.
 Privatisation-bound Bharat Petroleum Corp Ltd (BPCL) has proposed a 14 per cent higher capital spending at Rs 9,000 crore, two-third of which will be in its core refining business.
 Gas utility GAIL India Ltd will not see any major increase in its investments at Rs 5,412 crore as most of its pipeline grid expansion projects are nearing completion.
 Hindustan Petroleum Corp Ltd (HPCL), a subsidiary of ONGC, will invest Rs 11,500 crore in FY21, the same as the previous year.
 Oil India Ltd, the nation's second-largest oil producer, will invest Rs 3,877 crore next year as compared to Rs 3,675 crore in current fiscal.
 In her second budget, Finance Minister Nirmala Sitharaman had on Saturday laid down plans for expansion of national natural gas pipeline network to 27,000 km from the present 16,200 km and pricing reforms as the government looks at boosting the use of environment-friendly fuel.
 The government has set a target of raising the share of natural gas in primary energy basket to 15 per cent by 2030 from current 6.2 per cent. Connecting gas sources to consumption hubs is key to achieving this.
 Presently, most of the gas pipelines are concentrated in the western and northern part of the country with a few lines in the east and south.
 "To deepen gas markets in India, further reforms will be undertaken to facilitate transparent price discovery and ease of transactions," she had said.
 Presently, the price of natural gas produced domestically is fixed by a formula that averages out rates in gas surplus nations such as Russia and the US.
 "Further, it is proposed to expand the national gas grid from the present 16,200 km to 27,000 km," she said without giving a timeline. ANZ MKJ

ONGC, IOC, other oil PSUs to invest Rs 98,521 cr in FY21

New Delhi, Mar 31 () Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and other public sector oil companies have contributed over Rs 1,000 crore to the Prime Minister CARES Fund to help in the fight against COVID-19 pandemic. ONGC was the top contributor with Rs 300 crore, followed by IOC chipping in Rs 225 crore. Privatisation-bound Bharat Petroleum Corp Ltd (BPCL) provided Rs 175 crore, while Hindustan Petroleum Corp Ltd (HPCL) chipped in Rs 120 crore. Petronet LNG Ltd gave Rs 100 crore, gas utility GAIL Rs 50 crore and Oil India Ltd another Rs 38 crore. ONGC Chairman and Managing Director Shashi Shanker said the company gave Rs 300 crore from its corporate social responsibility (CSR) funds while the company employees contributed two days' salary, totalling Rs 16 crore, to the fund. "We are maintaining oil and gas production by practicing social distancing," he said adding besides contributing to the PM fund, company employees and their families have feeding hungry daily wagers. In Vadodara, company employees not just fed daily wagers but also handed over 300 ration kits (8 kg each) to the district police chief for distribution. At Dehradun, the company distributed 10,000 sanitizers and an equal number of face masks to poor slum dwellers. In Noida, ONGC employees at their personal level handed over 100 food packets to the police, he said. "IndianOil as a responsible corporate is contributing Rs 225 crore to #PMCaresFund specially created to combat COVID-19 pandemic," the company said in a tweet adding its employees are also contributing two days' of their salary towards the fund. In a statement, Petronet LNG Ltd said it has made a contribution of Rs 100 crore to the PM CARES fund. "While ensuring a seamless supply of LNG to India, the company stands with the nation and has also contributed Rs 1.53 crore to various health institutions for procuring personal protective equipment for healthcare workers at Bharuch in Gujarat and Kochi in Kerala," it said. BPCL in a statement said it continues to operate units, feeding the nation with fuel and LPG. "We want to assure everyone that we have enough of LPG stock, across our network. All our LPG plants have enough manpower to operate them and all our distributors are making all efforts to deliver Bharatgas cylinders at the doorstep of our consumers," it said. "BPCL and its subsidiaries commit Rs 175 crore towards PM CARES fund to help the government to combat coronavirus, as our humble contribution towards the well-being of the society," it said. Oil India Ltd Chairman and Managing Director Sushil Chandra Mishra said the company is contributing Rs 38 crore to the fund. "OIL strives not only towards energy security of the nation but also is resolved in rising to the occasion to combat this difficult time." Besides, employees of OIL have contributed one day's salary to the PM fund, he said. GAIL, besides contributing Rs 50 crore to the PM Fund, said its employees have contributed 2 days' salary amounting to Rs 3.8 crore. Further, Numaligarh Refineries Ltd has contributed Rs 25 crore, OIDB Rs 17 crore, MRPL Rs 2 crore, CPCL Rs 2 crore and Engineers India Ltd Rs 1 crore. "I am grateful, and delighted, to announce that the oil and gas establishment is ready with a contribution of Rs 1031.29 crore by the PSUs and other oil JVs for the PM-Cares Fund. Additionally, Rs 61 cr has been contributed by colleagues of PSUs from their salaries for the #PMCARES," Oil Minister Dharmendra Pradhan tweeted. "I am humbled to see the commitment of our people of oil and gas PSUs when the world faces one of the biggest crises. I am proud to be a part of this family," he added. ANZ ANZ ANSANS

ONGC, IOC, other oil cos contribute over Rs 1,031 cr to PM COVID-19 fund

New Delhi, Feb 28 () Fitch Ratings on Friday said HPCL-Mittal Energy Limited's credit metrics over 2019-20 and 2020-21 financial years would worsen by more than previously expected due to near-term weakness in refining margins and a faster pace of its petrochemical (petchem) capex. Earlier this week, Moody's Investors Service downgraded the corporate family rating of HMEL to Ba2 from Ba1 due to weak refining margins arising from a slump in fuel demand. In a statement, Fitch Ratings said while credit metrics will worsen in the current and the next financial year, "an accelerated earnings contribution from petchem will lead to faster deleveraging, resulting in net leverage (as defined by adjusted net debt/operating EBITDAR) coming down to below 5-times by FY23." The net leverage is still within Fitch's negative rating sensitivities for HMEL's Standalone Credit Profile (SCP) of 'bb-'. HMEL expects to start commercial operations of its petchem project by April 2021, a year ahead of its previous expectation. It spent R 3,800 crore during the first nine months of current fiscal and is likely to top Rs 6,000 crore for the financial year, compared with Fitch's previous expectations of Rs 3,500 crore. The company, which operates an 11.3 million tonnes a year oil refinery at Bhatinda in Punjab, is in the process of setting up a dual-feed petrochemical capacity of 1.2 million metrics tons per annum (mtpa). The project, which commenced in October 2017, was originally planned to be completed by March 2022. However, the company now intends to complete it by April 2021. The firm, which is an equal joint venture of Hindustan Petroleum Corp Ltd (HPCL) and steel czar Lakshmi N Mittal's Mittal Energy Investments, expects FY22 to be the first full year of petchem operations, with an EBITDA contribution of around USD 400-500 million. "However, we have assumed that it takes longer for the petchem project to stabilise and turn profitable, contributing around USD 115 million of EBITDA in FY22," it said. Fitch expects net leverage to peak at around 7x over FY20-FY21, before improving to below 5x in FY22 and below 4x in FY23. The leverage spike in FY21 is also affected by a one-off 60-day shutdown period for major maintenance of the refinery and integration of the petchem operations. "We had earlier expected leverage to range around 6x during FY20-FY21 and fall to around 5x by FY23," it said. HMEL reported EBITDA of Rs 2,600 crore during April-December 2019, with a gross refining margin (GRM) of USD 9.6 per barrel versus USD 10.3 in FY19. The reduction was in line with the industry due to strong new supply from China, volatility in crude prices leading to inventory losses, and falling heavy-fuel oil cracks in light of the tougher marine fuel regulations by the International Maritime Organization IMO from January 2020. Fitch said it has revised down its industry-wide GRM expectations, given the continuing surplus in the refining markets and also weaker-than-expected diesel spreads. The refining margins are also likely to be weighed down by the coronavirus situation in the near term but refining margins are expected to improve over the medium term, benefitting from strong diesel spreads driven by the IMO regulations, it said. "Sustained volatility in GRMs, lower earnings from the petchem project, or weaker demand for petroleum products if COVID-19 prevails for a prolonged period would be credit negative. "Any delays or challenges in the integration of HMEL's petchem project could also have an impact on deleveraging and add downward pressure to HMEL's SCP, which has little headroom at 'bb-'," Fitch added. Bhatinda refinery has high-complexity with a Nelson complexity index of 12.6, allowing for the processing of heavy crude oil and optimisation of product slate. ANZ ANZ MRMR

HMEL's credit metrics to worsen due to weak refining margins: Fitch Ratings

New Delhi, Feb 27 () Following are the top business stories at 1850 hours: DCM47 BIZ-VODA IDEA-MINIMUM-PACKAGR-hit Voda Idea wants govt to put in place floor data, call tariffsNew Delhi: Vodafone Idea has demanded fixing minimum tariffs for mobile data at Rs 35 per GB, around 7-8 times of current prices, and for calls at 6 paise per minute along with monthly charges from April 1 to enable it pay statutory dues and make its business sustainable. DCM25 BIZ-RBI-CRR-CREDIT-EXEMONCRR-exempted loans: RBI says deduction only on incremental lendingMumbai: Following some banks seeking clarity on the computation of CRR to be exempted for incremental lending to three specified retail loans, the Reserve Bank has said that the deduction is available only on the equivalent incremental credit to these segments. DEL85 BIZ-LD STOCKSMarkets slump for fifth day on coronavirus woes, F&amp;O expiryMumbai: Equity indices reeled for the fifth straight session on Thursday, pressured by a sell-off in bank, IT and energy counters, as the global markets grappled with fears of the coronavirus outbreak turning into a pandemic. DCM46 BIZ-SEBI-GITANJALISebi imposes Rs 5 cr fine on Mehul Choksi, Gitanjali Gems, another individualNew Delhi: Regulator Sebi on Thursday slapped a total fine of Rs 5 crore on fugitive businessman Mehul Choksi, Gitanjali Gems and another individual for violating various regulations, including listing norms.DCM17 BIZ-VODAIDEA-GOVTNot in sound financial state; can meet liabilities only with govt support: Voda Idea New Delhi: Troubled Vodafone Idea has written to the telecom department expressing its inability to pay full AGR dues unless the government takes urgent measures, including allowing staggered payment, reduction in levies and implementation of floor prices in the crisis-ridden sector. DCM28 BIZ-CORONAVIRUS-CHICKENSALES'Chicken sales down 50%, prices by 70% in India on coronavirus rumour'New Delhi: Chicken sales in India have come down over 50 per cent and prices by 70 per cent in the last one month as speculation swirled on social media that chicken causes coronavirus disease, denting both demand and prices, a top Godrej Agrovet official said on Thursday. DEL90 BIZ-RUPEE-CLOSERupee settles 6 paise higher at 71.59 against US dollarMumbai: The Indian rupee finished 6 paise higher at 71.59 (provisional) against the US dollar on Thursday amid easing crude oil prices and weakening of the greenback overseas. DCM18 BIZ-ECONOMY-ANIL AGARWALLight at end of tunnel, Indian economy will bounce back, says Anil AgarwalNew Delhi: Indian economy will soon bounce back from its worst showing in 11 years as a steep cut in taxes will help attract investments and the massive infrastructure spending revives economic activity, mining baron Anil Agarwal said.DCM5 BIZ-NCLAT-FLIPKARTNCLAT sets asides insolvency proceedings against FlipkartNew Delhi: The National Company Law Appellate Tribunal (NCLAT) has set aside the order of the NCLT to initiate insolvency proceedings against e-commerce major Flipkart. DCM16 BIZ-NEW ZEALAND-INDIANew Zealand for bilateral trade pact with India if New Delhi does not join RCEPNew Delhi: New Zealand on Thursday said it will look forward to a bilateral trade agreement with India in case New Delhi does not join the China-backed mega trade deal RCEP. DCM48 BIZ-LD HPCL-ONGC-ACQUISITIONONGC, HPCL buy out bankers in Petronet MHB for Rs 371 crNew Delhi: State-owned Oil and Natural Gas Corp (ONGC) and its subsidiary Hindustan Petroleum Corp Ltd (HPCL) have bought out lenders in Petronet MHB Ltd, the firm that owns a petroleum product pipeline in Mangalore, for about Rs 371 crore. SHWSHW

Business highlights

New Delhi, Mar 24 () Moody's Investors Service on Tuesday downgraded state-owned Oil and Natural Gas Corporation's (ONGC) rating in view of the uncertain oil price environment, depleting cash reserves of the government and government guidelines constraining its ability to lower dividends. The rating agency downgraded ONGC's local and foreign currency issuer ratings to Baa2 from Baa1. It also downgraded the ratings of the unsecured bonds issued by ONGC and those issued by its subsidiary ONGC Videsh Ltd. The outlook on all ratings remains negative, it said. "Given the increasingly uncertain oil price environment, ONGC's depleted cash reserves, and government guidelines that constrains state-owned enterprises' ability to lower dividends, ONGC's ratings are materially challenged at the previous rating level and its credit profile insufficient to remain above India's Baa2 sovereign rating. The rating outlook is negative in line with the outlook on India's sovereign rating," said Vikas Halan, senior vice-president, Moody's. "Further, the downgrade reflects our expectation that ONGC's credit metrics will weaken beyond the tolerance level for its ratings, if oil prices remain low for a prolonged period," he said. Against the backdrop of a significant deterioration in oil prices over the last month that is predicted to persist for most of 2020, ONGC decided to pay an interim dividend of Rs 5 per share last week, resulting in cash outflows of Rs 6,300 crore, which has reduced its cash reserves. ONGC had consolidated cash and cash equivalents of Rs 6,700 crore as on September 30, 2019. "ONGC's dividend policy is based on the guidelines issued by the Government of India in May 2016, which requires all government-owned companies to pay a minimum annual dividend equal to 5 per cent of their net worth even if they do not have sufficient profits," Moody's said. Despite depleted cash reserves, ONGC is expected to meet its debt repayment obligations given its access to capital as a state-owned company. "However, its lower cash reserves have diminished the company's capacity to protect its credit profile from oil price shocks," Halan said. ONGC's cash reserves, which provided protection against the oil price decline in 2016, have been depleting over the past three years because of high dividends, share buyback in 2019, and its acquisition of Hindustan Petroleum Corp Ltd (HPCL) in 2018. Its cash and cash equivalents declined to Rs 6,700 crore at September 30, 2019, from Rs 24,700 crore on March 31, 2016. Over the same period, ONGC's net borrowings increased to about Rs 1 lakh crore from Rs 21,500 crore. In Moody's base case scenario, the effects from the virus will persist into the second quarter of 2020, with improving economic fundamentals in the second half of the year. Under this scenario, Moody's expects oil prices to average USD 40-45 per barrel in 2020, returning to USD 50-55 per barrel in 2021. However, in a downside scenario, where economic weakness persists longer, oil would average USD 30-35 per barrel in 2020 and USD 35-40 in 2021. "Moody's expects ONGC's (retained cash flow) RCF/net debt to decline below 30 per cent under its base case scenario and below 20 per cent under its downside case scenario, assuming there are no changes to the company's cost structure, shareholder returns or investment plans," the rating agency said. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented. Oil and gas has been one of the sectors most significantly affected by the shock given its sensitivity to demand and oil prices. More specifically, the weaknesses in ONGC's credit profile have left it vulnerable to shifts in market sentiment in these unprecedented operating conditions, and ONGC remains vulnerable to the outbreak continuing to spread and oil prices remaining weak, Moody's said. ANZ HRS

You Searched For "Hindustan Petroleum Corp Ltd" and got 15 results