Government calls off sale of Tide Water stake to ONGC

Mumbai: The government has called off the sale of its stake in Tide Water Oil to Oil and Natural Gas Corporation (ONGC). Instead, the government will sell its stake in the auto lubricants maker through auction.

"Now, the government''s share in the company would be sold through open auction in the next two-three months," heavy industries minister Santosh Mohan Deb said.

ONGC has offered to pay Rs50 crore, around half of what the government would get from the market, the minister said. ONGC had already done due diligence for the company.

Tide Water Oil is a subsidiary of state-owned Andrew Yule and the sale of government equity in the company is part of a plan to revive the parent company Andrew Yule, the minister said.

Deb said, apart from its lubricant business, Andrew Yule would also shed its electronic business in due course and focus on its tea business.