OIL stocks up 2% after it announces Rs 1,738 cr equity investment in NE gas distribution venture
First Published: 5th September, 2023 13:16 IST
The board of Oil India Ltd (OIL) approved the equity contribution at its meeting yesterday, the PSU informed the National Stock Exchange (NSE) in a regulatory filing
The board of Oil India Ltd (OIL) has approved an equity investment of Rs 1,738 crore in North East Gas Distribution Company Limited (NEGDCL), a joint venture between OIL and state-run Assam Gas Company Ltd. The fund infusion is expected to give a boost to NEGDCL’s piped natural gas distribution plans in Assam and Tripura and setting up of CNG stations.
“Board of Directors of the Company at its meeting held today i.e. on Monday, 04th September, 2023, has accorded its approval for equity contribution of upto Rs. 1738 Crore by Oil India Limited (OIL) in line with OIL s shareholding percentage [49%] in the Joint Venture Company (JVC) with Assam Gas Company Limited (AGCL) [51%] viz. ‘North East Gas Distribution Company Limited (NEGDCL)’ [a State Govt. Company], incorporated for executing the City Gas Distribution (CGD) projects,” the regulatory filing on NSE said.
OIL stocks gained close to 2% in early morning trade today, post the announcement. Oil India’s shares were trading at 1.8% higher on the NSE in the opening hours of trade today.
Public sector undertaking, Oil India Limited, holds 49 percent shareholding in NEGDCL. The remaining 51 percent stake in the JV is held by Assam Gas Company. NEGDCL was incorporated in July this year for the distribution of piped natural gas in the Northeastern states.
As per the agreement inked by OIL and Assam Gas Company in April this year, NEGDCL would build local natural gas grids and provide piped natural gas to domestic and commercial establishments in Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur and Biswanath Chariali in Assam, and a few districts of Tripura. NEGDCL will also set up numerous compressed natural gas (CNG) stations. The investment is expected to give a boost to NEGDCL’s plans.
COMMENTS
TOPMOST STORY NOW
Live After almost a month of crisis, fuel situation in state normal: Tripura Minister Sushanta Chowdhury
21st May 2024Live RCTC announces 7-8 days Arunachal tour package from May 31, check price, tour itinerary here
21st May 2024Live Will not allow CAA to be implemented in ADC areas, vows TIPRA Motha chief Pradyot Debbarma
21st May 2024Live Tripura: Pradyot Kishore Debbarma and Sudip Roy Barman spur over CAA implementation
21st May 2024WE RECOMMEND
N.F. Railway collects fine worth a whopping Rs 66.27 cr from ticketless travellers
The N.F. Railway has appealed people not to board trains without tickets and warned stern action against violators
20th May 2024Assam: Amid rising concerns of global warming, 100 trees illegally chopped in Bajali district
This incident has been reported from Bishankushi area near the Kaldiya river in Bajali.
20th May 2024Man trampled to death by elephant in his sleep in Assam’s Numaligarh
The deceased has been identified as Chuttu Orang. He is survived by his wife.
20th May 20243 including 2 brothers die after falling into a well trying to catch a hen
The deceased persons have been identified as--Prosenjit Deb, Manjeet Deb (Brothers) and Amit Sen.
20th May 2024Storm hits Assam: Ferries damaged, service between Guwahati and North Guwahati suspended
According to sources, ferries have suffered significant damage due to the rain and thunderstorms that have been raging in various parts of Guwahati since last evening.
20th May 2024