[ad_1]
Betul, Goa: State-run Oil India is looking at incorporating a subsidiary at the International Financial Services Centre (IFSC) in GIFT City, Gujarat, said two people with knowledge of the development.
The move, if it takes shape, would help the company to manage its overseas assets through the planned subsidiary in India. Currently, it has subsidiaries in Singapore and the Netherlands managing its international assets. It would also help the company raise funds.
“A plan to set up a subsidiary at GIFT City is being considered within the company. However, a decision has not been taken yet,” said a person in the know.
The development comes at a time when dividends of the company along with other energy majors with a stake in Russian assets, are stuck amid economic sanctions on Russia by the West. Currently about $450 billion worth of dividend is yet to be received by the consortium comprising Indian Oil Corp., a subsidiary of BPCL Bharat Petroresources Ltd, and Oil India as the money is parked in a bank in Russia.
In September, Mint had reported that the public sector exploration and production (E&P) major has appointed a legal and tax consultant to explore ways and means to repatriate its $150 million dividend stuck in Russia to India.
Queries mailed to Oil India remained unanswered till press time.
OIL entered the international oil and gas business with its first international acquisition in Oman in 1998-99. The company’s overseas E&P portfolio as on 31 March 2023 was spread over seven countries— Russia, Venezuela, Mozambique, Nigeria, Bangladesh, Libya and Gabon.
The portfolio includes three producing assets in Russia one in Venezuela, two discovered and development assets in Mozambique and Nigeria and four exploratory assets in Libya, Gabon, and Bangladesh.
For the second quarter of FY24, the company reported a net profit of ₹325.31 crore, about 81% lower than ₹1,720.53 crore a year ago.
The consideration to set up a subsidiary at IFSC, GIFT City is in line with the recent announcements of other public sector companies including oil and gas companies—ONGC Videsh and Indian Oil Corp.
The International Financial Services Centre, developed as a multi-services special economic zone at Gift City, allows domestic and multinational companies the option to shift their overseas investments onshore.
The government has provided a competitive tax structure for IFSC in a bid to deve-lop it as a hub for international financial services activities.
//Web//
Gujarat International Finance Tec-City or GIFT City is a major financial hub several companies including India International Exchange, National Stock Exchange, State Bank of India, HDFC Bank, GIC Re among others operating there.
Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!
Download The Mint News App to get Daily Market Updates.
Published: 07 Feb 2024, 09:46 PM IST
[ad_2]
Source link