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Last Updated : Feb 01, 2017 09:22 PM IST | Source: CNBC-TV18

Budget 2017: Merging oil PSUs will create synergies in sector, says Pradhan

Finance Minister Arun Jaitley, in his Budget speech today, proposed merging of all oil public sector units (PSUs) to create one integrated company. It a welcome move and will create synergies in the sector, said the oil minister Dharmendra Pradhan.

Finance Minister Arun Jaitley, in his Budget speech today, proposed merging of all oil public sector units (PSUs) to create one integrated company. It a welcome move and will create synergies in the sector, said the oil minister Dharmendra Pradhan.

Over the last year, oil ministry has been in discussion on how Indian companies can take advantage of low oil prices. The government could look at forming 2-3 big companies, instead of one.

However, Pradhan added that it “won’t be wise to put all eggs in one basket.” The merger & acquisition decisions for this will be taken by the PSUs and not the government.

Once the due diligence is done, merger decisions will be taken by the independent boards.

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First Published on Feb 1, 2017 09:22 pm
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