ONGC’s plans to complete the merger of its refining subsidiary MRPL with recently acquired HPCL to align its upstream and downstream operations, which have got delayed.

The process is now expected to be completed by FY24 as ONGC’s plan to consolidate its refining and petrochemicals business around MRPL first itself is taking a lot of time, government sources privy to the development said. The proposed merger would only follow this consolidation exercise.

The process of merging ONGC’s two oil refining subsidiaries, Hindustan Petroleum Corp Ltd. (HPCL) and Mangalore Refinery and Petrochemicals Ltd.(MRPL), will be started only after the company completes merging ONGC Mangalore Petrochemical Ltd. (OMPL) with MRPL.

“The merger (HPCL and MRPL) under conservative assumptions could happen by FY24-end as MRPL-OMPL merger has to happen first and that business should continue for five years with FY19-end to be the effective date of their merger at the least. This process itself is taking time,” company officials privy to the process said.