MoPNG Approves ONGC’s Rs 10,501 Cr Capital Boost
Tags: Economy/Finance
The Ministry of Petroleum & Natural Gas (MoPNG) has approved ONGC's investment of up to Rs 10,501 crore in Oil & Natural Gas Corporation Limited (ONGC), Petro additions Limited (OPaL), Vadodara, Gujarat.
An Overview of the News
OPaL is a joint venture between ONGC, Gas Authority of India (GAIL), and Gujarat State Petroleum Corporation Limited (GSPC).
The approval includes:
Conversion of Compulsorily Convertible Debentures (CCDs) worth Rs 7,778 crore.
A balance payment of Rs 86 crore related to share warrants.
Total financial approval amounts to Rs 18,365 crore.
Impact of Investment
The investment will increase ONGC's equity stake in OPaL from 49.36% to 95.69%, making OPaL a subsidiary of ONGC.
The government has allocated 50% of the annual gas production from ONGC's new wells or up to 3.2 Million Metric Standard Cubic Meters per Day (MMSCMD) of domestic natural gas to OPaL.
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