Lok Sabha Question No. 4930 (UNSTARRED), answered on 2018-03-26
Subject: Merger of Oil and Gas Entities
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shrirang Appa Barne, PRITAM GOPINATH MUNDE, SHRIKANT EKNATH SHINDE, ANANDRAO  ADSUL, SHIVAJI ADHALRAO PATIL

## LOK SABHA

## UNSTARRED QUESTION No. 4930 TO BE ANSWERED ON 26 th  MARCH, 2018

## MERGER OF OIL AND GAS ENTITIES

4930.  SHRI SHRIRANG APPA BARNE: DR. PRITAM GOPINATH MUNDE: DR. SHRIKANT EKNATH SHINDE: SHRI ANANDRAO ADSUL: SHRI ADHALRAO PATIL SHIVAJIRAO:

## पेोलयम और ाकृ तक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the State-run oil and gas public sector companies have reportedly failed to compete with international and domestic private oil and gas majors and if so, the details thereof along with the reaction of the Government thereto;
- (b) whether the Government proposes to merge State-run oil and gas public sector entities to create an integrated firm having the strength to compete with international and domestic private oil and gas majors and if so, the details thereof;
- (c)  whether  the  Government  has  consulted  all  State-run  oil  and  gas  public  sector entities for their merger and if so, the details thereof; and
- (d) whether certain State-run oil and gas public sector entities have preferred to/intended to remain separate even in case of merger and if so, the details thereof and the response of the Government thereto?

## ANSWER पेोलयम और ाकृ तक गैस मंी (ी धम धान) MINISTER OF PETROLEUM & NATURAL GAS

## (SHRI DHARMENDRA PRADHAN)

(a): Oil and gas Public Sector Undertakings under Ministry of Petroleum and Natural Gas  have  improved  their  Global  Energy  Company  Ranking.    The  details  of  their rankings during the last three years are at Annexure.

(b) to (d): In the Budget Speech of 2017-18 on February 1, 2017, Finance Minister had  inter  alia  stated  that  'we  see  opportunities  to  strengthen  our  CPSEs  through consolidation,  mergers  and  acquisitions.    By  these  methods,  the  CPSE  can  be integrated across the value chain of an industry.  It will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders.  Possibilities of such restructuring are visible in the Oil  and  Gas  sector.  We  propose  to  create  an  integrated  public  sector  'Oil  Major'

which  will  be  able  to  match  the  performance  of  international  and  domestic  private sector oil and gas companies'.

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## ANNEXURE

ANNEXURE  REFERRED  TO  IN  PART  (a)  OF  THE  LOK  SABHA  UNSTARRED QUESTION NO. 4930 FOR 26.03.2018 REGARDING 'MERGER OF OIL AND GAS ENTITIES' ASKED BY SHRI SHRIRANG APPA BARNE, DR. PRITAM GOPINATH MUNDE, DR. SHRIKANT EKNATH SHINDE, SHRI ANANDRAO ADSUL AND SHRI ADHALRAO PATIL SHIVAJIRAO.

Global  Energy  Rankings  of  Indian  Oil  and  Gas  PSUs  under  the  administrative jurisdiction of Ministry of Petroleum and Natural Gas

|   Sl.No. | Name of PSU                                    |   2015 |   2016 |   2017 |
|----------|------------------------------------------------|--------|--------|--------|
|        1 | Indian Oil Corporation Limited (IOCL)          |     66 |     14 |      7 |
|        2 | Oil and Natural Gas Corporation Limited (ONGC) |     17 |     20 |     11 |
|        3 | Bharat Petroleum Corporation Limited (BPCL)    |     59 |     35 |     27 |
|        4 | Hindustan Petroleum Corporation Limited (HPCL) |    133 |     48 |     48 |
|        5 | GAIL (India) Limited                           |    120 |    132 |    106 |
|        6 | Oil India Limited (OIL)                        |    222 |    201 |    232 |

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