- News>
- Economy
Hive off OVL into a separate company: MEA, Planning Commission
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.
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.
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