GAIL - Assam Gas Cracker JVC to be a separate Company

Gail India Ltd has announced that Joint Venture Company (JVC) that will implement the Rs 54600 million Assam Gas Cracker Project at Lepetkata, District Dibrugarh will be a separate company. The equity participation in the project is governed by decision taken by Cabinet Committee on Economic Affairs (CCEA) of the Government of India. The CCEA had approved the equity structure of the Joint venture company to be led by the Company, with 70% equity participation. The remaining 30% equity will be shared equally among Oil India Ltd (OIL), Numaligarh Refinery Ltd (NRL) and Assam Industrial Development Corporation (Government of Assam).

The JVC will be a separate company. However, the subsidiary status of the JVC will be governed by the provisions of the Companies Act. When a company, in this case the Company, holds more than 50 percent in the nominal value of the equity share capital of another company i.e. the JVC, the latter is defined as a subsidiary of the former, in accordance with the provisions of the Companies Act.

Source : Equity Bulls

Keywords