In the recent HPCL and GSPC deals, ONGC was used by the Modi government as a convenient milch cow.
The acquisition would create India’s first integrated oil company.
The transaction will help the government cross its annual disinvestment target for the first time ever.
Potential challenges include the problem of resource raising, India’s fiscal consolidation promises and our energy security needs.
Instead of taking concrete measures on energy, the government is dangling some tantalising proposals.