New Delhi: Ending months of uncertainty, the Cabinet Committee on Disinvestment (CCD) on January 26 cleared the way for privatisation of Hindustan Petroleum Corporation Limited (HPCL) by sale of equity to a strategic partner and Bharat Petroleum Corporation Limited (BPCL) through a public offer.

According to sources, the oil major Oil and Natural Gas Corporation (ONGC) has been kept off bidding for stakes in the two oil public sector units (PSUs).

As much as five per cent equity has been earmarked for employees in both the oil PSUs, the sources said.

Later at a Press Conference, Disinvestment Minister Arun Shourie said in case of HPCL, 34.01 per cent would be offloaded to a strategic partner, five per cent to the employees and the government would retain 12 per cent equity.

With regard to BPCL, government would come out with a public issue of 35.2 per cent of the equity, while 5 per cent would be reserved for its employees and the government would retain 26 per cent.

On the issue of the construction of the Rs 9,000 crore Bhatinda refinery of HPCL, where already about Rs 400 crore have been invested, Shourie said either this would be built by the strategic partner or else by the government through the Indian Oil Corporation (IOC) or ONGC.

On the Bina refinery of BPCL, the Minister said there was no disagreement, as the public issue would be floated and the construction would go ahead.

PTI