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Mumbai8 minutes ago
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Oil and Natural Gas Corporation (ONGC) will form a separate subsidiary for its gas business. In the regulatory filing, the company said that the board has approved the new subsidiary. ONGC will own 100% stake in the new company.
Board approves, will increase stake in IGX
According to the filing, this company will buy, market and do business of fuel such as gas, LNG, biogas, methane. The board has also approved the acquisition of 5% shares in Indian Gas Exchange Limited (IGX) under Strategic Investments. IGX is a subsidiary of the Indian Energy Exchange (IEX). It is the only authorized gas exchange in India, which offers an automated platform for the trading of natural gas.
Objective of large stake in energy sector
The company said that our objective is to increase stake in India’s energy sector. Under this, the stake has to be increased from 6% to 15%. The company launched the Bengal Basin only in December last year. It is the company’s 8th basin in India.
Reliance has also taken similar steps
The government, in a policy decision of October 2020, has exempted companies associated with gas producers to purchase gas under an open bid from them. Reliance O2C Ltd, a subsidiary of Reliance Industries. Under this policy, gas was purchased in the auction held on February 5.