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The government has not taken a call on allowing state—owned gas utility GAIL India Ltd to buy Asian Development Bank’s 5.2 per cent stake in Petronet LNG.
“No decision has been taken yet,” said Vivek Rae, Oil Secretary.
ADB in 2011 offered to sell its 39 million shares or 5.2 per cent stake in Petronet. GAIL, Oil and Natural Gas Corp, Indian Oil and Bharat Petroleum, which hold a 12.5 per cent stake each in Petronet, along with GdF of France have the first right of refusal over the ADB stake.
Originally, all the four state—owned promoters — IOC, ONGC, GAIL and BPCL were interested in buying ADB’ stake but the firm’s management was opposed to the move as it would have led to PSU holding crossing 50 per cent that would turn the LNG importer into a government entity.
Petronet is registered as a private company even though public sector oil firms hold 50 per cent stake and Oil Secretary is its Chairman.
Following Oil Ministry’s veto, IOC, ONGC and BPCL withdrew and waived off their pre—emption or right of first refusal. But GAIL continues to insist on buying ADB stake as its board believes that it is strategically important for the gas player to have a greater say in Petronet.
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