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OVL, Hindujas to tie up

NEW DELHI: The Oil and Natural Gas Corporation (ONGC) on Wednesday disclosed that it was likely to pay about Rs. 17,000 crore this financial year to subsidise petrol, diesel, domestic cooking gas and kerosene. The board of directors of ONGC Videsh Ltd. (OVL) have given their approval for a tie up with the Hindujas to pick up a stake in Phase-12 of the giant South Pars gas field in the Persian Gulf and develop the Azadegan oil field. Talking to newsmen on the sidelines of a ‘National symposium on corporate governance,’ organised by the National Institute of financial Management (NIFM) and the Institute of Company Secretaries of India here, Mr. Sharma said the company had paid Rs. 7,448 crore subsidy in the first half of 2007-08. For the full year, the company expected the payout to cross Rs. 17,000 crore.

Under the subsidy sharing mechanism, upstream companies like ONGC, Oil India Limited and GAIL India bear roughly one-third of the under-realisation on sale of petrol, diesel, domestic cooking gas and kerosene. He said OVL officials and representatives of the Hindujas would meet the Iranian officials here on Thursday.

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