Oil India approves equity investment of Rs 1,738 crore in joint venture, NEGDCL

On Monday, September 4, the government-run Oil India Ltd. (OIL) announced that its board had approved an equity investment of up to Rs. 1,738 crore in the joint venture business, the North East Gas Distribution business Ltd. (NEGDCL), which was established in partnership with Assam Gas Company Ltd.

According to a stock exchange filing, this strategic investment advances the implementation of city gas distribution (CGD) projects and is consistent with Oil India's 49 percent ownership stake in NEGDCL.

On September 4, 2023, the board of directors of Oil India Ltd. met to discuss the equity contribution and unanimously approved the distribution of money.

Oil India reported a 4 percent rise in net profit in the June quarter on the back of higher production, which offset a reduction in price. The company registered a net profit of Rs 1,613.34 crore in the first quarter of the current fiscal compared to Rs 1,555.49 crore a year ago, OIL said in a statement.

"The growth comes on the strength of a 5.3 percent growth in its crude oil production to 0.820 million tonnes in Q1 of FY24 vis-à-vis 0.729 million tonnes produced in Q1 of the last FY, coupled with lower operating costs," it said.

Source: Media Reports