NEW DELHI: The Cabinet Committee on Economic Affairs on Tuesday approved an investment of Rs.5,000 crore to be made by public sector explorer ONGC into the equity share capital of its foreign arm ONGC Videsh.
"The Cabinet Committee on Economic Affairs has given its approval for investment of Rs.5,000 crore by Oil and Natural Gas Company Limited (ONGC) into the equity share capital of ONGC Videsh by conversion of existing loan of equivalent amount into equity," a cabinet communique said.
The approved investment will strengthen the capital base of ONGC Videsh, the statement said.
"It will enhance the ability of ONGC to undertake overseas exploration and production business, thereby improving the energy security of the country," it added.