The government should be cautious with its plan to merge state-owned oil companies such as ONGC and IOC, analysts said.
They pointed out at the botched-up merger of Air India and Indian Airlines, which resulted in the national carrier looking for government support to survive.
The government should weigh all options before moving ahead, they added.
"Merging state-owned oil companies is a significant challenge," former petroleum secretary Saurabh Chandra said while referring to the Air India-Indian Airlines merger. "The different work culture and hierarchical structures of the airlines were not taken into consideration while merging them and this botched up the affairs."
While presenting the Union budget, finance minister Arun Jaitley said, "We seek opportunities to strengthen our central public-sector enterprises through consolidation, mergers and acquisitions."
12/02/17 R.Suryamurthy/The Telegraph
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They pointed out at the botched-up merger of Air India and Indian Airlines, which resulted in the national carrier looking for government support to survive.
The government should weigh all options before moving ahead, they added.
"Merging state-owned oil companies is a significant challenge," former petroleum secretary Saurabh Chandra said while referring to the Air India-Indian Airlines merger. "The different work culture and hierarchical structures of the airlines were not taken into consideration while merging them and this botched up the affairs."
While presenting the Union budget, finance minister Arun Jaitley said, "We seek opportunities to strengthen our central public-sector enterprises through consolidation, mergers and acquisitions."
12/02/17 R.Suryamurthy/The Telegraph
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