The Indian government has given the green light for a major investment in ONGC Petro additions Limited (OPaL). The Oil and Natural Gas Corporation (ONGC) received approval to inject an additional ₹10,501 crore into OPaL, a move that will significantly boost the company’s operations.
Along with this, the government has also approved converting ₹7,778 crore worth of debentures and ₹86 crore related to share warrants into equity. This total investment of ₹18,365 crore will make OPaL a subsidiary of ONGC, giving ONGC a 95.69% ownership stake.
This strategic investment strengthens ONGC’s role in the petrochemical sector and provides a solid plan for OPaL’s future growth. Additionally, the government has allowed OPaL to receive 50% of ONGC’s new domestic gas production or up to 3.2 MMSCMD, whichever is lower, at a price slightly above the standard rate. This ensures OPaL has a reliable and competitive feedstock for its operations.
This decision is expected to boost OPaL’s capabilities and contribute to the growth of India’s petrochemical industry.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
