“The actual intention behind the Budget announcement is not to create one huge oil firm,” one of them said. Under the plan, explorer ONGC will “control” HPCL or BPCL, which are refining and distribution companies.“Currently, HPCL and BPCL have the government as the majority shareholder. One of the key ideas behind the plan is to lower risk, he said.“The world over, the largest and most successful oil companies like Shell, BP and Exxon are vertically integrated,” the person said. Investors benefit from reduced volatility of profits,” said another official. IOC is the nation’s largest refiner and fuel retailer.

Source: Economic Times February 21, 2017 18:41 UTC