"IBP was a subsidiary of IOC in the early seventies. We have expressed our views to the petroleum ministry and given a chance we would like to pick up stake in the company," IOC chairman and managing director M A Pathan told PTI. The IOC chief said that the corporation was facilitating IBP through product availability and there was a possible synergy between the two companies.

Interestingly, the IOC offer is contrary to the recommendations of Nitish Sengupta committee report, which suggested that government should divest its stake in excess of 26 per cent in IBP to Bharat Petroleum Corporation Ltd (BPCL). The Disinvestment Commission had also suggested to the government to sell its 33.58 per cent of its equity in IBP to a strategic buyer. The government at present holds 59.58 per cent inthe marketing company.

IOC has been on a buying spree to consolidate its position as the largest petroleum refining and marketing company in the country. The corporation has already taken 10 per cent stake in Oil and Natural Gas Corporation (ONGC) and five per cent in Gas Authority of India Ltd (GAIL), the leaders in petroleum and gas exploration, respectively.

Indian Oil has also offered to buy government stakes in Engineers India Ltd (EIL) and Lubrizol India Ltd, apart from plans to pick up equity in Shipping Corporation of India. The Sengupta committee had recommended BPCL as a strategic partner for IBP for continued supply of petroleum products, marketing back up and necessary financial support.

However, IOC chairman Pathan said the corporation could be best suited to IBP especially in northern India for providing petroleum products. Incidentally, the Sengupta committee had suggested that IBP should be assured of the required products from Mathura and/or Panipat, both refineries of IOC. Thecommittee had also recommended that Numaligargh Refinery Ltd (NRL) should continue with Bharat Petroleum Corporation Ltd and IBP.

Rs 750 cr terminal in Kochi
Bangalore: The joint venture partner for the first ever Rs 750 crore international terminal to be set up at Vallarpadam by the Cochin Port Trust will be decided by this year end, according to port chairman C Babu Rajeev.Speaking to newsmen after an interactive session with exporters here last night, he said the port would have 26 per cent participation in the build own, operate and transnfer (BOOT) project with the balance being shared by the joint venture partner on a 30-year lease basis.

The terminal would be one of the biggest in the country with ships of 16 mtr draught for loading and unloading container cargo. Presently 80 per cent of the international cargo of the shipping liners for India is being diverted to Colombo, unloaded and transhipped by feeder ships either to Chennai or Cochin port. With the completion of the first phase ofthe terminal scheduled in 2005 the entire international cargo could directly land in Cochin port, he added.