The proposed merger of top oil PSUs is a welcome step : OIL CMD

Sarkaritel
By Sarkaritel February 3, 2017 13:47

The proposed merger of top oil PSUs is a welcome step : OIL CMD


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Finance Minister Arun Jaitley, in his recent Budget speech proposed merging of oil sector PSUs to create one integrated company that can match the competitiveness of international and domestic private sector oil and gas companies. Commenting on the Finance Minister’s budget proposal Utpal Bora, Chairman and Managing Director, Oil India Limited said “The proposed merger of top oil PSUs is a welcome step.“

Merging of the state oil firms to create entities with global scale is expected to give higher financial leverage, address market volatility and also bring synergy across the hydrocarbon value chain. There is news that a merged entity of the top oil PSUs would become the 9th largest oil company globally. According to the Finance Minister such a step shall give the entities “capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders.”

Sarkaritel
By Sarkaritel February 3, 2017 13:47