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ONGC to Infuse INR 150 billion in OPaL

State-owned Oil and Natural Gas Corporation(ONGC) will infuse about INR 150 billion in OPaL as part of a financial restructuring exercise that will see gas utility GAIL being edged out of the petrochemical firm. ONGC currently holds 49.36% stake in ONGC Petro-additions Ltd (OPaL), which operates a mega petrochemical plant at Dahej in Gujarat. GAIL (India) Ltd has 49.21% interest and Gujarat State Petrochemical Corp (GSPC) has the remaining 1.43%.

 

The ONGC board has approved a financial restructuring 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 INR 70 billion more equity, which will give it about 95% stake, the company said in a stock exchange filing.

 

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 INR 862.81 million at the rate of INR 0.25 per warrant," it said.

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