The country's largest oil marketing company, IOC (Indian Oil Corporation) and BPCL (Bharat Petroleum Corporation Limited) have shown interest in buying GAIL India Limited. IOC and BPCL have given separate indications from the Petroleum Ministry regarding interest in GAIL.

It is believed that after this step, the two companies have expressed the intention to increase natural gas transportation and marketing business. Finance Minister Arun Jaitley had announced the government's plan to create an integrated oil company in the public sector in the 2017-18 budget speech, which can match the functioning of international and domestic private oil and gas companies in the workplace.

This step is part of the same link. ONGC, the country's largest oil and gas producing company, has proposed the acquisition of the HPCL and the oil refinery and the fuel marketing company. This proposal has got Cabinet approval.

IOC, the country's largest oil refinery company, wants to acquire a gas company like a second refinery or GAIL to increase its capacity. The company believes that it has gas business with LNG terminal under construction, city gas distribution projects and gas marketing. In this case, the acquisition of the country's largest gas transportation and marketing company will give it strength in this area.   

This is BPCL's plan which also has natural gas ambitions and has expressed interest in the acquisition of GAIL by writing to Petroleum Ministry. He has said that this is his first interest. While OIL is his second option. The government has 66.13 percent stake in OIL. At the current market price, its value is 18,000 crores. According to sources, the government has not taken any decision on the proposals of both the PSUs.

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