Indian Oil proposes sale of hydrogen facilities instead of oil, gas pipelines: Report

Indian Oil Corporation (IOC) is not very keen on selling a stake in its pipelines and has instead proposed to sell some of its hydrogen-producing facilities.

Indian Oil plans to hive off some of its hydrogen-producing units and sulphur recovery facilities at its refineries to a separate entity and sell stakes in it to one or more private companies, Economic Times reported, citing sources.

Indian Oil, the largest oil refiner and fuel marketer in the country, is also the biggest hydrogen producer in India. Indian Oil has proposed the idea to the Centre, which is now looking into it.

The plan to monetise the hydrogen-producing facilities was in response to the government’s proposal to sell stakes in oil and gas pipelines of Indian Oil, GAIL and Hindustan Petroleum, the report said.

"Indian Oil is not too keen to sell a stake in its pipelines and has instead suggested a stake sale in its hydrogen facilities," sources told the publication.

The corporation is looking to raise around Rs 10,000 crore by selling its hydrogen facilities, the report said.

Moneycontrol could not independently verify the report.

Read: Stake sale in BPCL, Air India and SAIL units at advanced stage, says govt

The government is planning to monetise assets worth Rs 17,000 crore by selling stakes in oil refiners GAIL and IOCL in the next financial year, as part of its plan to divest stakes in state-owned companies.

The Centre’s plans to relinquish control of large enterprises such as BPCL and Air India did not make much headway in this financial year due to the coronavirus pandemic. however, the government has lined up a mega disinvestment and asset monetisation plan for the next four years.

Prime Minister Narendra Modi has been batting for the privatisation of government enterprises and called on private companies to participate in the asset monetisation programme.

Read: Government has no business to be in business, says PM Narendra Modi

Addressing a webinar on the effective implementation of Budget provisions in disinvestment on February 24, Modi said that the government has no business to be in business.

"The government has this vision to support the country's enterprise and business, but the government itself running the enterprise or continuing to be its owner is something that is not needed in this age. Neither is it possible," he added.