The Hindu Business Line : IOC clarifies

Apropos "IOC, ONGC differ over cross-holdings" (Business Line, January 8): The story has made it look as if IOC and ONGC have locked horns on the issue, whereas there is no difference of opinion between IOC and ONGC on the cross-holding issue.

We, therefore, thought it fit to clarify as under:

The issue of "not seeing eye to eye over the future of each other's cross-holdings," as claimed in the story, is incorrect.

IOC has never expressed opposition to the purported suggestion of ONGC buying back its shares from us (IOC). But the story claims "eruption of a major crossfire between IOC and ONGC," which is entirely incorrect.

IOC stands by its comments that we would not be keen on buying back our shares from ONGC. This does not translate into our objecting to selling our holding of ONGC shares to it vis-à-vis the option of off-loading them in the market, as claimed in the story.

In fact, off-loading of cross-holdings, either in the market or through a buy-back, would first need the approval of the parent Ministry before implementation.

In the overall interest of stakeholders, IOC is fully committed to realising only the best value for investments made in ONGC and, therefore, will have no problem if instead of IOC off-loading ONGC shares in the market, ONGC desires to buy its shares back from IOC.

N. Srikumar

General Manager

Corporate Communications

Indian Oil Corporation

New Delhi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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