The JV company will have equity participation from EIL and TPL in the ratio of 50:50 and will undertake engineering, procurement and construction (EPC) jobs in India and abroad mainly in the areas of oil and gas, fertiliser, power and infrastructure.
The JV will undertake EPC jobs all over the globe barring United Arab Emirates (UAE) where EIL is already talking to another foreign company for collaborating in this region.
Sources disclosed that the proposal to form a JV with TPL was cleared at a recent board meeting of EIL on July 5 To begin with, a memorandum of understanding (MoU) has already been signed between the two sides and EIL will shortly approach the petroleum ministry for its approval as required by its Articles of Association.
To be headquartered in New Delhi, the initial authorised capital of the Tata-EIL JV company will be Rs 15 crore of which Rs 10 crore would be paid up.
On being contacted, a senior EIL official confirmed the move. The official admitted that this new venture may be overlapping in EIL's current areas of operation.
“TPL’s strength lies in power sector while we are the leaders in oil and gas projects. Coming together, will help in leveraging each other's strengths and would be a win-win for both sides,” he said.
The day-to-day management operation of the company would be administered under the direction of the JV board comprising of four members.
The CMD of EIL will be the ex-officio non-executive chairman while the managing director will be nominated by TPL. Another director from EIL and a non-executive director from TPL will be the other members.
Source : Financial Express
Link to EIL on this blog
Posts
No comments:
Post a Comment