Oil India Ltd (OIL) on September 4 informed the stock exchanges that its board has approved an equity contribution of Rs 1,738 crore in North East Gas Distribution Company Limited (NEGDCL), a joint venture it had formed with the state-run Assam Gas Company Ltd.
Oil India, a central public sector undertaking, holds 49 percent shareholding in NEGDCL, which was incorporated in July this year for the distribution of piped natural gas in the Northeast states.
"The 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 1,738 crore by Oil lndia Limited in line with OIL's shareholding percentage (49 percent)," the regulatory filing stated.
The remaining 51 percent stake in the joint venture is held by Assam Gas Company. As per the agreement inked by OIL and Assam Gas Company in April, NEGDCL is to 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.
The company will also set up numerous compressed natural gas (CNG) stations, a statement had noted.
Assam Chief Minister Himanta Biswa Sarma, in whose presence the agreement was signed in April, had lauded the OIL management for reinvesting a part of its earnings in his state and other parts of the Northeast through initiatives such as the NEGDCL.
The JV company would prove to be a milestone in the strengthening of the state's economy, he had said, adding that it would also help in Assam's endeavour to make the transition towards a greener fuel-based economy, in sync with the Northeast Hydrocarbon Vision 2030.
With PTI inputs
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