The Union Cabinet on Thursday allowed Non-Resident Indian steel baron Lakshmi N Mittal to pick up 49 per cent stake in state-run Hindustan Petroleum Corp's Bhatinda refinery.
Mittal Investments plans to acquire the stake in the 9 million tonne per year refinery for Rs 3,365 crore (Rs 33.65 billion) through its 100 per cent arm, Mittal Energy Investments Pte Ltd, incorporated in Singapore.
The Cabinet approval was required since current government policy restricts foreign direct investment in public-sector petroleum refineries to up to 26 per cent.
HPCL will hold 49 per cent stake in the Rs 17,973 crore (Rs 179.73 billion) project, while the balance 2 per cent would be allocated to financial institutions.
Meanwhile, the Cabinet Committee on Economic Affairs approved the increase in royalty to the States on coal and lignite by 14 per cent.
The CCEA also approved an increase in buffer stock of sugar by 3 million tonne.