RBI/2012-13/480
A.P. (DIR Series) Circular No. 99

April 23, 2013

To,

All Category - I Authorised Dealer Banks

Madam / Sir,

Investment by Navratna Public Sector Undertakings (PSUs), OVL and OIL in unincorporated entities in oil sector abroad

Attention of the Authorised Dealer (AD - Category I) banks is invited to the Notification No. FEMA.120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004] (the Notification), as amended from time to time, and A.P. (DIR Series) Circular No. 59 dated May 18, 2007 and para 3(i) of A.P. (DIR Series) Circular No. 48 dated June 03, 2008 in terms of which Navratna Public Sector Undertakings (PSUs) and ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) are allowed to invest in overseas unincorporated entities in oil sector (for exploration and drilling for oil and natural gas, etc.), which are duly approved by the Government of India, without any limits under the automatic route.

2. On a review, it has now been decided that such facility is also extended to the overseas investments in the incorporated JV / WOS in oil sector (for exploration and drilling for oil and natural gas, etc.) by the Navratna Public Sector Undertakings (PSUs) and ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL), which are duly approved by the Government of India, without any limits under the automatic route.

3. All the other terms and conditions prescribed under the Circulars and Notification under reference shall remain un-changed.

4. AD - Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,

(Rashmi Fauzdar)
Chief General Manager