New Delhi, Sep 09: Ministry of External Affairs and Planning Commission have suggested that ONGC Videsh Ltd, the fully-owned subsidiary of oil and natural gas corp., be spun off as a separate company as it has assumed a significant size with the current portfolio of assets.
OVL, government's flagship firm for exploration and production abroad, has already acquired stakes in oil and gas fields in 8 countries across the globe and is negotiating stake in another 6 countries. "In view of the growing portfolio of assets, the Ministry of External Affairs and Planning Commission - key members of the empowered steering committee - have suggested hiving off OVL into a separate company with full-time directors," sources said.

Currently, OVL board has only two full time directors - Atul Chandra (as managing director) and A K Butola (director finance), while ONGC directors fill in the remaining six slots.

The suggestion comes at a time when state-run gas firm GAIL India is demanding that OVL equity be split equally among the public sector oil companies on the lines of Petronet LNG LTD. Bureau Report