IndianOil keen on ADB stake in Petronet
New Delhi   13-Mar-2008
After GAIL, IndianOil has expressed interest in buying out Asian Development Bank's 5.2 per cent stake in Petronet LNG Ltd, company Chairman Sarthak Behuria said here. However, if the state-run promoters of Petronet are not allowed to raise stake in the company for fear of it becoming a public sector unit, Behuria suggested selling ADB's shareholding to the public. Behuria's suggestion of selling ADB's shareholding to the public may find takers in other promoters - GAIL, ONGC and BPCL, which want to block "backdoor" entry of steel czar Lakshmi Mittal into the nation's largest LNG importing firm. We have written to Petronet CEO Prosad Dasgupta about our interest in ADB stake and that if that was not possible it should be divested in favour of Indian public," Behuria said. Petroleum Secretary M S Srinivasan, who is also the chairman of Petronet, is against the four promoters buying ADB's stake and may instead back Dasgupta's move to get Mittal or US's Chevron on board. Dasgupta had in response to GAIL Chairman U D Choubey's written request for buying out ADB's stake stated that the multilateral agency's stake should be given to a third party like Mittal or Chevron, which in exchange is willing to offer LNG to Petronet. IndianOil, GAIL, ONGC and BPCL together hold 50 per cent stake in Petronet while Gaz de France holds 10 per cent. These firms have the first right of refusal over ADB stake. IndianOil will invest about Rs 500 crore in downstream research and development during the 11th Five Year Plan ending 2012 to maintain its leadership position, company chairman Sarthak Behuria said. Speaking at the 6th International Symposium on Fuels and Lubricants (ISFL-2008), he said IndianOil has till date invested close to Rs 1,000 crore in setting up world-class facilities at its R&D Centre located at Faridabad.