Government confers Oil India with Navratna Status
23 Apr 2010
The government has conferred Navratna status on Oil India Ltd (OIL) today that will give the oil major more freedom in financial and administrative matters.
The ministry of petroleum & natural gas awarded the Navratna status on Oil India vide a letter dated 20 April 2010, which will now enable it to forge joint ventures both in India and abroad up to 15 per cent of their networth or Rs1,000 crore, whichever is lower, without taking prior permission of the administrative ministry.
The Navratna status to OIL will be a shot in the arm for the PSU that has consistently performed under highly competitive environment.
The company, which is a major player in the north east, will now be in a position to form joint ventures, acquire assets and have strategic collaborations.
It has currently teamed up with Indian Oil and has made a $570-million bid for the London-based and AIM-listed independent oil and gas explorer Gulfsands, which was rejected by the board of the Syria focussed oil company last month. (See: Gulfsands rejects IOC-OIL combine's $570 million bid)
But both the Indian oil majors are likely to raise their bid next week even as the UK regulator may issue then with a ''put up or shut up'' notice, which will force then to put forth a formal offer, or walk away from the acquisition for at least six months. (See: Oil India, Indian Oil may face Gulfsands bid deadline)