Mumbai: State-owned Oil and Natural Gas Corporation (ONGC) has decided to pump in ₹15,000 crore in ONGC Petro-additions Ltd (OPaL) as part of a financial restructuring. The financial restructuring is aimed at edging out the gas utility firm, GAIL, from its petrochemical firm, media reports said.
Currently, ONGC holds 49.36% share in OPaL, which operates a mega petrochemical plant at Dahej in Gujarat. GAIL (India) Ltd has 49.21% stake in it while Gujarat State Petrochemical Corp (GSPC) has the remaining 1.43%, officials said.
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The ONGC board has recently given its go ahead to the financial restructuring proposal of the petchem firm, which had been making losses due to its high debt. ONGC will convert share warrants into equity, buy-back debentures and invest ₹7,000 crore more equity, which will give it about 95% stake, according to a regulatory filing by the refiner to the stock exchanges.
The proposal approved includes “conversion of share warrants issued by OPaL and subscribed by ONGC into equity shares upon payment of final call money of ₹86.281 crore at the rate of ₹0.25 per warrant,” it said.
ONGC to invest ₹2 lakh cr in energy transition projects
As part of its net-zero emission by 2038, the ONGC has proposed to invest ₹ 2 lakh Cr in energy transition projects across the country. Targeting 10 GW of renewable energy by 2030, Signed an MoU for 5 GW in Rajasthan and seeking similar projects.
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It has also planned to to establish 25 compressed biogas (CBG) plants for automotive and electricity use, and explore ways to setup of a 1 million tonne per annum green ammonia plant. Initiatives include green ammonia, hydrogen, solar, and offshore wind, focus on achieving net-zero for scope-I and scope-II emissions.
