In a strategic move to enhance its global financial operations, the prestigious Navratna company ONGC Videsh Ltd (OVL) has successfully incorporated a wholly owned subsidiary, OVL Overseas IFSC Ltd (OOIL), in the flourishing Gujarat International Finance Tec-City (GIFT City). This development is poised to mark a significant milestone in ONGC Videsh’s pursuit of consolidating and efficiently managing the treasury activities of the company and its 25 subsidiaries, which span across 15 countries.
OOIL, now based in GIFT City, is set to operate as the Global Treasury Centre, overseeing the financial intricacies of OVL’s widespread subsidiaries, including step-down subsidiaries. Leveraging the business-friendly regulatory environment that GIFT City offers, OOIL aims to streamline the consolidation of funds from various countries within the group. Moreover, the subsidiary plans to raise additional funds strategically to support the ambitious target of producing 40 Million Metric Tonnes of Oil & Oil equivalent (MMToe) by the year 2040 from its overseas assets.
With the inauguration of India’s first International Financial Services Centre at GIFT City, the move signifies a broader trend where Indian and overseas multinationals are opting to shift their overseas investments onshore. OOIL is positioned to play a pivotal role as the gateway for ONGC Group’s global outreach, facilitating and managing overseas ventures and investments.
Commenting on the establishment of OOIL, industry experts acknowledge the strategic advantage of setting up a Global Treasury Centre in GIFT City. The regulatory environment, coupled with state-of-the-art infrastructure, positions GIFT City as an ideal hub for financial operations, enabling companies like OVL to optimize their treasury functions and streamline financial management across borders.
ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corporation Limited (ONGC), has a robust presence in several countries, and this move to establish OOIL in GIFT City aligns with the company’s commitment to operational excellence and financial prudence. It not only enhances OVL’s financial capabilities but also underscores India’s growing prominence as a global financial hub.
