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(24 Feb 2025, 11:39)

Oil India partners with MECL for mineral exploration

Oil India has announced that it has signed a memorandum of understanding (MoU) with Mineral Exploration and Consultancy (MECL) to collaborate in the exploration and development of critical mineral blocks both in India and overseas.


According to an exchange filing, the partnership was described as a significant milestone in advancing the exploration of critical minerals, both within India and abroad, recognizing their vital importance for the nation’s energy security and sustainable growth.

Under this collaboration, Oil India and MECL will jointly undertake exploration activities aimed at identifying, evaluating, and developing mineral-rich blocks. This includes the recently awarded Phop Graphite and Vanadium block in Arunachal Pradesh.

Meanwhile, the company has announced the formation of a joint venture with Assam Power Generation Corporation (APGCL) called APGCL OIL GREEN POWER.

The formation of the joint venture was approved by the Ministry of Petroleum & Natural Gas (MOP&NG) through a letter dated 15th July 2024, with the concurrence of the Department of Investment and Public Asset Management (DIPAM) and NITI Aayog.

Under this venture, the companies will plan, develop, construct, own, and operate renewable and green energy projects. These projects will include solar, small hydro, hydrogen-based wind, biomass, or any other form of renewable energy. Additionally, the venture will explore, research, and develop green hydrogen infrastructure, including production, storage, transportation, and distribution facilities. The companies will also focus on the research and development of green hydrogen technologies, with an emphasis on production using renewable energy sources and promoting green hydrogen as an alternative energy source.

Oil India holds a 49% share in the joint venture, with a total subscribed capital of 100,000 shares, each valued at Rs 10.

The official announcements were made on Saturday, 22 February 2025.

Oil India is a state-owned Maharatna under the administrative control of India's Ministry of Petroleum and Natural Gas. As of 31 December 2024, the Government of India held 56.66% stake in the company.

The company’s standalone net profit declined 22.88% to Rs 1,221.80 crore on 1.58% slide in revenue from operations (excluding excise duty) to Rs 5,239.58 crore in Q3 FY25 over in Q3 FY24.

The scrip slipped 2.52% to Rs 382.25 on the BSE.

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