The sub also rises
Can ONGC’s overseas arm for acquisition of oil and gas assets rival the parent in size and status in the future? The subsidiary has recently secured the schedule ‘A’ status on a par with ONGC, which means OVL’s managing director and functional directors are now entitled to the same salary as their counterparts in ONGC. Further, OVL is projected to contribute 50% of ONGC’s production by 2030. We wonder whether OVL is on its way to becoming a separate company, of the same standing of ONGC? DK Sarraf, the current MD of OVL, who was earlier director (finance) in ONGC, might not count himself unlucky for not making it to chairmanship of ONGC.
After getting customs duty imposed on power equipment, Praful Patel, heavy industry minister, is pitching for incentives to promote export of capital goods. He has cited the example of China to buttress his case. But Patel forgot that the same argument was used by domestic manufacturers to build a case for curbing import of Chinese power equipment.