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Time of India
7 days ago
- Business
- Time of India
Rajasthan to attract ₹11,200 crore investments as Cabinet clears formation of three energy sector JVs
In a Cabinet meeting chaired by Chief Minister Bhajan Lal Sharma on Monday at the Chief Minister's Office, the Rajasthan government approved several key decisions aimed at boosting urban development, medical tourism, renewable energy, and employee welfare. A major highlight of the meeting was the approval for the formation of three joint venture (JV) companies in the energy sector, expected to bring ₹11,200 crore in investments to the state. According to Minister Jogaram Patel, the joint ventures are being established in continuation of the Memoranda of Understanding (MoUs) signed between the Rajasthan government and three Central Public Sector Undertakings (CPSUs) on August 8, 2024, and September 29, 2024. These ventures will help expand renewable energy capacity in the state, support peak electricity demand, and reduce the financial burden on the government in power generation. Patel stated that the state government's equity in these joint ventures will be arranged through the current assets of state-owned power companies. The three joint ventures are: Indraprastha Gas Limited (IGL) – RVUNL JV The first joint venture will be between Indraprastha Gas Limited and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), with shareholding of 74% and 26% respectively. A 500 MW solar power project will be set up in RVUNL's solar park under this JV. The project will lead to an investment of approximately ₹2,000 crore in the state. Oil India Limited – RVUNL JV A second joint venture will be formed between Oil India Limited and RVUNL for setting up renewable energy projects with a capacity of 1,000 MW solar and 200 MW wind energy. This JV will have equal 50:50 shareholding, and is expected to attract an investment of ₹5,000 crore. GAIL (India) Limited – RVUNL JV The third JV will be created between GAIL (India) Limited and RVUNL, also with 50:50 equity participation. Under this arrangement, the existing 300 MW gas-based Dholpur Power Plant and 270.50 MW Ramgarh Power Plant will be transferred to the joint venture. GAIL will ensure the availability of gas for both power plants, which is expected to improve their operational performance and efficiency. In addition to managing these two gas power plants, this JV will also develop 750 MW of solar and 250 MW of wind power projects, contributing to a total investment of ₹4,200 crore in Rajasthan. According to Minister Jogaram Patel, the formation of these joint ventures is expected to play a crucial role in expanding the state's renewable energy infrastructure and ensuring cleaner, more reliable power generation while attracting large-scale investments into Rajasthan's energy sector.
Time of India
7 days ago
- Business
- Time of India
Oil breakthrough: Assam to become the first state government in India to produce and profit from crude
Assam is set to become the first state government in India to take a direct role in oil production, marking a significant turning point in the country's energy sector. The move follows a hydrocarbon discovery in the Namrup Borhat-1 well, located in the Dibrugarh district, a project in which the Assam government holds a 'significant stake' alongside Oil India Limited (OIL). Chief Minister Himanta Biswa Sarma called the development a 'major step forward in energy security and economic resilience.' In a post on X, he declared, 'This discovery makes Assam the first state govt to be a direct oil producer, makes exploration efforts successful, empowers Assam with revenue & royalty, and ensures steady availability of energy for the country.' He also described it as a 'proud moment' for the state. Assam's role in oil is no longer passive For decades, Assam has played a key role in India's oil story. Home to the country's first oil well at Digboi, it has long been a vital source of crude. Decades on, it remains a heavyweight in domestic crude production. In 2023–24, the state produced 4,361 thousand metric tonnes (TMT) of crude oil, ranking third after Rajasthan and Gujarat, according to the Ministry of Petroleum and Natural Gas . Over the past three financial years (2021–22 to 2023–24), India's total crude oil output stood at 88,223 TMT. Assam's contribution was 12,518 TMT, making it one of the top onshore producers. Rajasthan led with 15,380 TMT, followed by Gujarat with 14,425 TMT. Tamil Nadu (985 TMT), Andhra Pradesh (688 TMT), Arunachal Pradesh (147 TMT), and West Bengal (a negligible 0.06 TMT) followed at a distance. Offshore production, meanwhile, dominated the landscape with 44,078 TMT over the same period. Until now, Assam's role had been limited to supplying resources and collecting royalties. But with its new direct stake in upstream oil operations, the state is no longer just a crude supplier, it's a partner in production, entitled to a share of both revenue and risk. Understanding the "significant stake" "Oil India Limited has discovered hydrocarbon presence in Namrup Borhat-1 well, a well where Govt of Assam holds a significant stake," the Chief Minister posted on X. While the state government hasn't disclosed the exact size of its stake in the Namrup Borhat-1 well, a December 2020 Economic Times report offers a likely clue. It refers to a memorandum of understanding signed between Oil India Limited (OIL) and the Assam Hydrocarbon and Energy Company Limited (AHECL), a state-owned entity. Under that agreement, AHECL was granted a 10% participating interest in the Namrup Block, which spans 125 square kilometres. Since the Borhat-1 discovery falls within that block, it's reasonable to assume that Assam, through AHECL, holds the same 10% stake in the well. That's more than symbolic ownership. A participating interest gives Assam a share in both the risks and revenues of exploration and production, earnings from crude oil sales, not just royalties or taxes. However, Economic Times could not independently verify the precise shareholding structure specific to the Borhat-1 well. Investing, not just facilitating This isn't the only example of the state building long-term equity positions in the energy sector. In April 2023, the Assam Gas Company Limited (AGCL), also state-owned, signed a joint venture agreement with OIL to roll out city gas distribution networks in parts of Assam and Tripura. The JV company is majority-owned by AGCL with a 51% stake, while OIL holds the remaining 49%. The plan includes laying pipelines, setting up CNG stations, and supplying piped gas to homes and businesses in districts like Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur, Biswanath Chariali, and select parts of Tripura. With an authorised capital of ₹500 crore and an initial paid-up capital of ₹100 crore, the Chief Minister described the venture as a milestone that will help strengthen the state's economy. Additionally, in December 2024, the state cabinet cleared a 40% equity stake in the Namrup-IV Fertilizer Plant, part of the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL). It's another example of the state stepping in not just as a facilitator, but as a co-owner with skin in the game.
Time of India
7 days ago
- Business
- Time of India
Oil breakthrough: Assam to become the first state government in India to produce and profit from crude
Assam is set to become the first state government in India to take a direct role in oil production, marking a significant turning point in the country's energy sector. The move follows a hydrocarbon discovery in the Namrup Borhat-1 well, located in the Dibrugarh district, a project in which the Assam government holds a 'significant stake' alongside Oil India Limited (OIL). Chief Minister Himanta Biswa Sarma called the development a 'major step forward in energy security and economic resilience.' In a post on X, he declared, 'This discovery makes Assam the first state govt to be a direct oil producer, makes exploration efforts successful, empowers Assam with revenue & royalty, and ensures steady availability of energy for the country.' He also described it as a 'proud moment' for the state. Assam's role in oil is no longer passive For decades, Assam has played a key role in India's oil story. Home to the country's first oil well at Digboi, it has long been a vital source of crude. Decades on, it remains a heavyweight in domestic crude production. In 2023–24, the state produced 4,361 thousand metric tonnes (TMT) of crude oil, ranking third after Rajasthan and Gujarat, according to the Ministry of Petroleum and Natural Gas . Over the past three financial years (2021–22 to 2023–24), India's total crude oil output stood at 88,223 TMT. Assam's contribution was 12,518 TMT, making it one of the top onshore producers. Rajasthan led with 15,380 TMT, followed by Gujarat with 14,425 TMT. Tamil Nadu (985 TMT), Andhra Pradesh (688 TMT), Arunachal Pradesh (147 TMT), and West Bengal (a negligible 0.06 TMT) followed at a distance. Offshore production, meanwhile, dominated the landscape with 44,078 TMT over the same period. Until now, Assam's role had been limited to supplying resources and collecting royalties. But with its new direct stake in upstream oil operations, the state is no longer just a crude supplier, it's a partner in production, entitled to a share of both revenue and risk. Understanding the "significant stake" "Oil India Limited has discovered hydrocarbon presence in Namrup Borhat-1 well, a well where Govt of Assam holds a significant stake," the Chief Minister posted on X. While the state government hasn't disclosed the exact size of its stake in the Namrup Borhat-1 well, a December 2020 Economic Times report offers a likely clue. It refers to a memorandum of understanding signed between Oil India Limited (OIL) and the Assam Hydrocarbon and Energy Company Limited (AHECL), a state-owned entity. Under that agreement, AHECL was granted a 10% participating interest in the Namrup Block, which spans 125 square kilometres. Since the Borhat-1 discovery falls within that block, it's reasonable to assume that Assam, through AHECL, holds the same 10% stake in the well. That's more than symbolic ownership. A participating interest gives Assam a share in both the risks and revenues of exploration and production, earnings from crude oil sales, not just royalties or taxes. However, Economic Times could not independently verify the precise shareholding structure specific to the Borhat-1 well. Investing, not just facilitating This isn't the only example of the state building long-term equity positions in the energy sector. In April 2023, the Assam Gas Company Limited (AGCL), also state-owned, signed a joint venture agreement with OIL to roll out city gas distribution networks in parts of Assam and Tripura. The JV company is majority-owned by AGCL with a 51% stake, while OIL holds the remaining 49%. The plan includes laying pipelines, setting up CNG stations, and supplying piped gas to homes and businesses in districts like Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur, Biswanath Chariali, and select parts of Tripura. With an authorised capital of ₹500 crore and an initial paid-up capital of ₹100 crore, the Chief Minister described the venture as a milestone that will help strengthen the state's economy. Additionally, in December 2024, the state cabinet cleared a 40% equity stake in the Namrup-IV Fertilizer Plant, part of the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL). It's another example of the state stepping in not just as a facilitator, but as a co-owner with skin in the game.
Time of India
09-07-2025
- Health
- Time of India
Restoration done, but Dr John Berry White Museum still a far cry
1 2 Dibrugarh: Seven and a half years after restoration work began, the proposed heritage museum at Dr John Berry White Medical School in Dibrugarh remains in limbo — caught in bureaucratic delays and procedural lapses. The 125-year-old building, which laid the foundation for medical education in northeast India, was to be converted into a museum under a Rs 2.1 crore initiative funded by Oil India Limited and executed by INTACH (Indian National Trust for Art and Cultural Heritage). Though INTACH claims the restoration is complete, the site hasn't been handed over to the Dibrugarh district administration due to pending joint inspections and missing technical documentation. A recent RTI reply revealed that the required inspection by officials from PWD (building & electrical), OIL, and INTACH couldn't be conducted as INTACH failed to submit the final plan and technical sanction. Officials confirmed that a Jan 2025 handover attempt was declined overdue diligence concerns. The project, originally slated for completion within 15 months of the MoU signed in Jan 2018, has seen repeated delays. BCPL also contributed Rs 15 lakh for boundary wall construction, and a core committee formed in Aug 2018 oversaw the museum plan, involving district officials and medical professionals. The site commemorates British surgeon Dr John Berry White, who donated Rs 50,000 -- equivalent to nearly Rs 10 crore today -- to establish the medical school in 1900. It later evolved into the Assam Medical College in 1947. With no clear timeline for inspection or handover, the restored building remains shuttered.
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Business Standard
09-07-2025
- Business
- Business Standard
Oil India, GAIL extend 15-year gas supply deal from Rajasthan fields
Oil India Limited (OIL) and GAIL (India) Limited have signed an agreement to extend their existing Gas Sale and Purchase Agreement for another 15 years, beginning July 1, 2025. The deal involves the supply of up to 900,000 standard cubic metres per day (SCMD) of natural gas from OIL's gas fields in Rajasthan, Oil India said in a BSE filing on Wednesday. The agreement was signed between Ranjan Goswami, Executive Director (Business Development) at OIL, and Sumit Kishore, Executive Director (Gas Marketing) at GAIL in New Delhi. 'This agreement highlights the dedication of both Maharatna CPSEs in the production, transportation and distribution of gas available from domestic gas fields,' the companies said in a joint statement. GAIL and OIL Q4 results In the fourth quarter of financial year 2025, GAIL (India) Limited reported a consolidated net profit of ₹2,491.76 crore, nearly flat from ₹2,468.71 crore recorded in the same quarter last year (Q4 FY24). Consolidated revenue from operations rose by 11.3 per cent to ₹36,551.15 crore in Q4 FY25, compared to ₹32,833.24 crore in the corresponding period of the previous year. In contrast, Oil India Limited posted a consolidated net profit of ₹1,310.10 crore for Q4 FY25, representing a decline of nearly 39 per cent from ₹2,140.72 crore in Q4 FY24. Revenue from operations fell by around 6 per cent to ₹9,587.82 crore, down from ₹10,165.78 crore in the year-ago quarter. On Wednesday, GAIL's shares closed at ₹185.05 apiece, while Oil India's shares ended at ₹445.30 each on the BSE.
