The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra Modi, has given its approval for investment of ₹ 5,000 crore by Oil and Natural Gas Company Limited (ONGC) into the equity share capital of ONGC Videsh by conversion of existing loan of equivalent amount into equity.

The approved investment will strengthen the capital base of ONGC Videsh. It will enhance the ability of ONGC to undertake overseas Exploration and Production (E&P) business, thereby improving the energy security of the country.

Equity conversion strengthens subsidiary capital and boosts parent company capacity for overseas exploration and production. Approval authorises a conversion of an intercompany loan into equity whereby the parent company will invest in the share capital of its wholly owned subsidiary to strengthen the subsidiary's capital base and enhance the parent's capacity to undertake overseas exploration and production activities.