The government of India is coming up with an idea which will dwarf the revenue of the giant corporation houses such as Chevron or General Electric. Government is set to start consultations for an ambitious plan to merge 13 state oil firms.
The Cabinet Secretariat has referred the idea of the integrated corporation house, which would also absorb various institutions related to safety, development and analysis. Following this, the oil ministry has begun the process of evaluating the prospects of creating the conglomerate.
If works according to the plan, the merger will have a bigger market value than Russian state oil giant Rosneft and India's Reliance Industries Ltd, sources said. It plans to consult all stakeholders including the state firms that may be combined to create the mega corporation.
A similar proposal was considered more than a decade ago. But the government in July 2005 said that the official committee that studied the matter felt that a merger or formation of the holding company "may not be advisable for the present".
Oil and Natural Gas Corporation (ONGC), the top oil producer and one of the largest companies in the country, leads the pack of 13 state oil companies that are being considered for the merger.
Other companies include Indian Oil Corporation, the nation's largest refiner and fuel retailer, Bharat Petroleum Corporation, Hindustan Petroleum, GAIL, Mangalore Refinery and Petrochemicals (MRPL), Chennai Petroleum, Numaligarh Refinery and Oil India.