Assam Gas Cracker JVC to be a separate company

New Delhi, Jul 26 (UNI) The Joint Venture Company (JVC) that will implement the Rs 5460 crore Assam Gas Cracker Project at Lepetkata, in Assam, will be a separate company.

The JVC will be a separate company. However, the subsidiary status of the JVC will be governed by the provisions of the Companies Act.

When a company, in this case GAIL, holds more than 50 percent in the nominal value of the equity share capital of another company i.e.

the JVC, the latter is defined as a subsidiary of the former, in accordance with the provisions of the Companies Act.

The equity participation in the project is governed by the decision taken by the Cabinet Committee on Economic Affairs (CCEA) of the Government of India.

The CCEA had approved the equity structure of the Joint venture company to be led by GAIL, with 70 per cent equity participation.

The remaining 30 per cent equity will be shared equally among Oil India Limited (OIL), Numaligarh Refinery Limited (NRL) and Assam Industrial Development Corporation (Government of Assam).

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