New Delhi:Oil and Natural Gas Corp. Ltd, India’s biggest energy exploration company, may sell a 19% stake in a chemical venture to gas distributor GAIL (India) Ltd for as much as Rs600 crore, chairman and managing director R.S. Sharma said.
The explorer agreed in-principle to sell the stake after the chairman of both state-run companies met late yesterday. GAIL will seek approval from its board for the investment in March, chairman and managing director Upendra Datta Choubey said by telephone from New Delhi on Friday.
GAIL is adding chemical plant capacity to boost revenue and offset slowing profit from selling gas, which accounts for half its revenue.
The state-run distributor said in 2007 it plans to spend $4 billion (Rs20,280 crore) on two plants with an annual capacity of 1 million tonnes of ethylene, used to make textiles and plastics.