BPCL would benefit to develop CGD Network in Arunachal Pradesh from Oil India Limited’s strong presence and experience in hydrocarbon operation in Northeast Area
The Board of Directors of Bharat Petroleum Corporation Limited (BPCL) at its meeting held on 25th October 2024 has approved entering into a joint venture agreement with Oil India Limited for the purpose of developing the City Gas Distribution (CGD) project in the state of Arunachal Pradesh. The above joint venture agreement will be entered into in due course after the receipt of necessary approvals.
The shareholding pattern of the proposed JV company shall be as under: BPCL - 50% and OIL - 50%. Out of the above, shareholding upto 10% may be offered to Govt. of Arunachal Pradesh/Nominees of Govt. of Arunachal Pradesh, if they wish to participate. In such a case, the equity of BPCL and OIL shall be reduced in equal proportion.
The proposed JVC shall be a Private Limited Company incorporated under the Companies Act, 2013, with equal equity participation from BPCL and Oil India Limited. The JV will focus on supply, distribution and marketing of CNG/PNG/LNG and allied retail business.
The Authorized Share Capital of the proposed JVC shall be Rs. 125 crores consisting of 125,00,0000 shares of Rs 10 each, with an option to enhance the same based on future investment opportunities. The initial issued, subscribed and paid-up capital of proposed JVC shall be Rs. 5 crores. The proposed JVC shall have its registered office, within the state of Arunachal Pradesh.
BPCL would benefit from developing the CGD Network in the state of Arunachal Pradesh from Oil India Limited’s strong presence and experience in hydrocarbon operation in the Northeast Area.
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