Date:19/05/2007 URL: http://www.thehindubusinessline.com/2007/05/19/stories/2007051903050600.htm

Navratna oil PSUs allowed to invest abroad

Our Bureau

Mumbai May 18 The RBI has allowed Navratna public sector undertakings to invest in unincorporated entities in the oil sector abroad under the automatic route, without prior approval.

It has liberalised and simplified the procedures for Navratna PSUs — ONGC, HPCL, BPCL, GAIL (India) and IOC - and has done away with the prior RBI approval for investing in oil companies abroad.

However, the PSUs will have to continue to get their proposals approved by the appropriate competent authorities - the Empowered Committee of the Secretaries and Cabinet Committee on Economic Affairs. It also has to be supported by a certified copy of the Board Resolution approving such investment.