Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

ONGC Considers Buying out Rest of Western India Petrochemical Project

ONGC Petro additions Ltd (OPaL), majority-owned by ONGC, is primarily a polymer manufacturer, a chemical compound used in everything from textiles to plastics and packaging.

Reuters

Updated:September 11, 2019, 4:17 PM IST
facebookTwitterskypewhatsapp
ONGC Considers Buying out Rest of Western India Petrochemical Project
FILE PHOTO: The logo of Oil and Natural Gas Corp's (ONGC) is pictured along a roadside in Ahmedabad, September 6, 2016. REUTERS
Loading...

Singapore: India's Oil and Natural Gas Corp Ltd plans to buy out the rest of a western Indian petrochemical project it does not already own and launch a public offering if it fails to find a strategic partner for it, its head of finance said on Tuesday.

ONGC Petro additions Ltd (OPaL), majority-owned by ONGC, is primarily a polymer manufacturer, a chemical compound used in everything from textiles to plastics and packaging.

"We are looking at various options. Our first preference is to convert OPaL into a subsidiary by converting share warrants and debenture into equity if we don't get a strategic partner," Subhash Kumar, ONGC's director of finance told Reuters. "Another option is to merge OPaL with ONGC."

ONGC will decide by the end of its fiscal year on whether to make OPaL a subsidiary, he said. "After making it a subsidiary, it will take another two years to list the company," Kumar said. ONGC has long tried to bring in a strategic partner in the petrochemical project but failed to strike a deal so far.

Reuters reported last year that Saudi Basic Industries Corp (SABIC), world's no. 4 petrochemical company, had shown interest in buying about half of the project. SABIC's Kuwait Petroleum Corp had also shown interest in buying a stake.

"Prospective partners had set certain terms for participation like selling petchem in their own brand," Kumar said, citing reasons talks to sell a stake had not progressed.

He did not name any companies with whom ONGC had held talks.

ONGC's stake in the project could rise to 70% if it converts 26 billion rupees of share warrants into equity and to about 93% if it also converted 77.78 billion rupees of debentures into shareholdings, Kumar said.

ONGC owns 49.36% of the project and gas utility Gail (India) Ltd owns another 49.21%. The remaining stake is held by Gujarat State Petroleum Corp Ltd, a state government-owned gas company, as of March.

The petrochemical plant currently produces 1.1 million tonnes of ethylene, 400,000 tonnes of propylene and other products - most of which are building blocks for polymers - at Dahej in India's western state of Gujarat.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Reliance 1,278.25 3.15
Zee Entertain 277.50 2.17
Maruti Suzuki 6,992.00 1.36
HDFC Bank 1,260.00 0.22
BPCL 467.50 3.69
Company Price Change %Gain
Zee Entertain 277.65 2.04
Reliance 1,280.25 3.36
Maruti Suzuki 6,993.10 1.36
Infosys 795.20 3.93
HDFC Bank 1,259.25 0.06
Top Gainers
Company Price Change %Gain
Infosys 795.45 4.07
Tech Mahindra 704.80 3.22
Reliance 1,276.50 3.01
BPCL 466.30 3.43
Tata Motors 130.80 2.27
Company Price Change %Gain
Infosys 795.40 3.96
Reliance 1,277.80 3.16
Tata Motors 130.70 2.23
TCS 2,045.40 1.52
HCL Tech 1,046.45 1.36
Top Losers
Company Price Change %Gain
Eicher Motors 18,389.95 -4.41
JSW Steel 234.55 -3.75
SBI 304.15 -3.06
Axis Bank 705.40 -2.77
Larsen 1,485.30 -2.83
Company Price Change %Gain
SBI 304.00 -3.06
Axis Bank 705.55 -2.96
Larsen 1,485.00 -2.79
Asian Paints 1,759.90 -2.46
Hero Motocorp 2,760.00 -2.27

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results