The state-owned Oil Marketing Company (OMC's) has been in the news recently as the government is planning to sell its entire stake in the firm in order to meet its disinvestment targets of about 1.05 Lakh crore this year.
The OMC's which have predominantly been under the control of the government in this country has been utilized as an extension arm of the government in reciprocating government schemes and making sure that every last man has been covered in them. The subsidy based distribution of kerosene and petroleum gas cylinders has been a particular success in that regard when it comes to the co-operation between the government and the OMC.
The most recent scheme which was launched by the government of India to provide LPG gas connections to poor women's in the country for trying to achieve their emission targets was a huge success as it covered about five crore households, and these companies had a pivotal role to play in it. Thus the complete stake sale in such an enterprise, though, seems understanding from an asset point of view, but that is not all it has been showcased in the past. But such a sale is not unprecedented when it comes to India as only a far as last year in the history the government made a similar stake sale in another OMC known as Hindustan petroleum corporation limited (HPCL) to another government-owned entity the oil and natural gas corporation limited (ONGC) which led to a lot of tussle in recognition of promoter and other technical aspects. So this move is seen from a spotlight both in public and private sector as it has a massive potential to boost the private equity share that the industry holds in OMC's which needs a revision as India heads into the next phase of its economic progress and with the weight of assets that the company has, it is more likely to invite competitive bids and outperform its main rival and the precedent-setting HPCL in market evaluations.
Tags : OMC's, ONGC, HPCL ,