8AUGUST 2024CENTRE GOVT NODS INVESTMENT OF RS 10,501 CR IN ONGC PETRO ADDITIONS LTDINDIAN GOVERNMENT IMPLEMENTS MEASURES TO IMPROVE AVIATION PROWESSThe central government has approved Oil and Natural Gas Corporation Limited (ONGC) to make a substantial investment in ONGC Petro additions Limited (OPaL) through an approval letter. This move signifies a crucial point for OPaL, as it is set to gain an injection of extra equity funding totaling Rs 10,501 crore."The Company has received a letter dated 09.08.2024 from the Ministry of Petroleum & Natural Gas, Govt. of India (GoI), inter-alia, conveying approval of the GoI for infusion of additional equity capital up to Rs 10,501 crore in ONGC Petro additions Limited (OPaL)," said the company on Friday.Moreover, the Government of India has approved the transformation of backed Compulsorily Convertible Debentures (CCDs) valued at Rs 7,778 crore, in addition to a remaining payment of Rs 86 crore for share warrants. The overall investment will amount to Rs 18,365 crore, leading to OPaL becoming a subsidiary of ONGC, holding a significant 95.69 percent equity ownership."This will change the status of OPaL into a subsidiary of ONGC with a 95.69 per cent equity stake," the company statement added.This move enhances ONGC's position in petrochemicals and sets a clear path for OPaL's future activities. The Government of India has also approved the allocation of 50 percent of the yearly gas output from new wells or interventions in ONGC's fields, or a maximum of 3.2 MMSCMD of local natural gas, whichever is less.This allocation is meant to give necessary feedstock assistance to OPaL, with pricing being established at a 20 percent premium above the APM (Administered Price Mechanism) price. Expanding the helicopter industry presents a significant opportunity and the government is set to advance towards manufacturing helicopters, Union Aviation Minister Kinjarapu Rammohan Naidu said on Friday. India is poised for a significant transformation in its aviation sector with the introduction of the Bhartiya Vayuyan Vidheyak Bill, 2024, he said.The Bill was moved for passage in the Lok Sabha on Friday.It promises to enhance the country's aviation capabilities, including helicopter manufacturing and the introduction of seaplanes.In a speech delivered while introducing the Bill, the minister highlighted the potential for growth in India's helicopter industry, noting that the country operated just 250 helicopters at present."This is a great opportunity to tap into. We are going to manufacture helicopters and the state-of-design element in the Bill will improve the establishment of manufacturing plants and designs," he said.The minister expressed confidence that once the necessary infrastructure ws established, state governments would lend their support to these initiatives.Naidu also announced plans to introduce seaplanes as part of a broader strategy to expand air travel options."Certain policies have been made and we have taken industry feedback and made some changes, which will open a whole new area of air travel. We can connect places with dams, lakes and seas through this initiative," he explained. 8AUGUST 2024TOP STORIES
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