Kolkata: The government has decided not to sell Andrew Yule''s 28 per cent stake in Tide Water Oil to ONGC as it feels that the latter has valued Tide Water Oil''s stake far too low.

The valuation arrived at by ONGC for the 28 per cent stake in Tide Water Oil was around Rs60 crore. The upstream oil company had evinced interest in lubricant maker Tide Water Oil in 2006, the sources said. .

The government now plans to go ahead with a fresh due diligence of the lube manufacturing company.

Tide Water Oil is a subsidiary of Andrew Yule and Company, which is into industrial equipment and tea business.

According to sources said the sale of stake was a part of the revival package of Andrew Yule and Company, which was sanctioned recently.

BIFR had received enquiries from other suitors, for which a fresh due diligence would be done to arrive at a fair value of the company''s shares.