Investment by Navaratna PSUs in oil sector abroad – RBI instructions
Investment in the oil sector (i.e. for exploration and drilling for oil and natural gas, etc.) in an unincorporated entity overseas by an Indian party requires prior approval of the Reserve Bank.
It has now been decided to further liberalise and simplify the procedures and to allow NavaratnaPSUs to invest in unincorporated entities in oil sector abroad, under the automatic route. Accordingly, AD Category - I banks may allow the remittances by NavaratnaPSUs towards investment in the oil sector (i.e. for exploration and drilling for oil and natural gas, etc.) in an unincorporated entity overseas after ensuring that the proposal has been approved by the appropriate competent authority.
RBI CIRCULAR NO. 59/RBI., Dated: May 18, 2007