To decide on investments of up to USD 1 billion (about Rs 6400 crore) without government nod, State owned ONGC Videsh Ltd (OVL) has sought after greater financial autonomy, so as to speed up acquisition of overseas oil and gas fields. The overseas arm of state explorer Oil and Natural Gas Corp, Board of OVL, currently has powers to decide on investment of up to Rs 300 crore. If the amount is higher than that, it has to first go to an Empowered Committee of Secretaries (ECS) and then to the Cabinet Committee on Economic Affairs (CCEA).
“We are seeking at least Navratna PSU status for OVL… USD 1 billion investment powers should be granted to us,” said the company’s Managing Director Narendra K Verma.
He said they are seeking more than Navratna powers which gives them financial powers to decide on investment projects of up to Rs 3,000 crore. They are seeking powers to decide on investments of up to USD 1 billion. Greater financial powers will help the company make quicker decisions on acquiring oil and gas assets abroad.
OVL has 35 projects in 16 countries from Brazil to New Zealand and is looking at certain acquisitions in oil and gas rich regions. Navranta PSU status is granted to a state firm if it has made consistent profits above a certain level. One of the conditions for grant of Navranta status is that the company should be listed on stock exchanges.
Recently the parent firm had turned down a request from the Department of Disinvestment (DoD) to get the company listed saying low oil prices do not offer favourable valuations.
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