K.R Srivats
Ashwini Phadnis

New Delhi, Aug. 3

The Cabinet Committee on Economic Affairs (CCEA) on Thursday permitted ONGC Videsh Ltd to acquire a share in an oil asset, Omimex de Colombia, owned by Omimex Resources Inc, a US exploration and production company.

Briefing newspersons, the Union Finance Minister, Mr P. Chidambaram, said OVL had been permitted to go ahead with the acquisition.

"OVL will fund the acquisition from its own resources or the resources of the parent.

"Further details cannot be revealed because of commercial confidentiality," the Finance Minister said.

Gandhar project

The CCEA also approved a transmission system associated with Gandhar II gas-based power project. The transmission system would be set up by Power Grid Corporation at an estimated cost of Rs 653.21 crore.

The completion schedule for this transmission system is 33 months. It will be implemented after assigning of the fuel supply agreement.

The Finance Minister said the fuel supply agreement would be signed shortly.

The CCEA has also approved the recommendation of the Foreign Investment Promotion Board (FIPB) to allow a subsidiary company of Software Development Systems to invest in Flextronics Software Systems.

This approval will entail a foreign investment inflow of $515 million (Rs 2,317 crore).

The CCEA also approved restructuring of Central Electronics Ltd.

(This article was published in the Business Line print edition dated August 4, 2006)
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