Indian Oil Corporation would have access to the latest additive technology after diluting a 24 per cent stake in Lubrizol India Pvt Ltd to Lubrizol Corporation, USA for an undisclosed sum. The cabinet today gave its approval for the state-owned refiner to sell part of its stake in the company. IOC held 50 per cent stake in Lubrizol, prior to the selloff.
"The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, today gave its in-principle approval to permit IOC to sell a 24 per cent equity in one of its joint venture companies, Lubrizol India Private Limited (LIPL) to Lubrizol Corporation, USA (LC), the other joint venture partner," a government statement said.
According to company officials, Lubrizol Corp - which will hold 76 per cent in Lubrizol India post IOC stake sale - is expected to bring the latest technology, which will benefit Indian Oil."The sale will enable IOC to have long term association with its joint venture partner and... Lubrizol India Pvt Ltd (LIPL) to have access to the latest global additive technologies developed by Lubrizol Corporation, USA," the statement said.
Coal Bed Methane - The cabinet also approved pricing and marketing freedoms to the producers of natural gas from coal seams (CBM) and also allowed them to sell the fuel to affiliates. The move will help operators such as Reliance Industries and ONGC to quickly commercialise their CBM blocks, reversing the trend of investors relinquishing these blocks because of viability issues. The operators will have to sell the gas at arm's length price. They will have to ensure a fully transparent and competitive bidding process from amongst users of the CBM gas "with the objective that the best possible price is realised for the gas without any restrictive commercial practices," the government statement said. Also, the companies have been permitted to sell the CBM gas to any of their affiliates if they cannot identify any buyer. "Royalty and other dues to the government, however, shall be payable on the basis of Petroleum Planning & Analysis Cell (PPAC) notified prices or selling prices, whichever is higher," the statement said.