President of India-backed company and EIL sign Rs 39.42 crore agreement for 750 Nm³/hr helium recovery demo plant

DSIJ Intelligence-2 / 19 Aug 2025/ Categories: Mindshare, Trending

President of India-backed company and EIL sign Rs 39.42 crore agreement for 750 Nm³/hr helium recovery demo plant

The stock is up by 16 per cent from its 52-week low of Rs 205 per share

On August 18, 2025, a significant agreement was formalised between the ONGC Energy Centre Trust (OECT) and Engineers India Limited (EIL). This partnership aims to establish a Helium Recovery Demonstration Plant at ONGC's Gas Collection Station in Kuthalam, Tamil Nadu. OECT, the research and development arm of Oil and Natural Gas Corporation Limited (ONGC), is undertaking this project to recover Grade-A Helium with 99.995 per cent purity from natural gas.

The project, which is based on a technology package developed by CSIR-Indian Institute of Petroleum (CSIR-IIP), has a total agreement value of Rs 39.42 crore (plus applicable GST). The plant is designed to process 750 Nm3/hr of natural gas and can operate at up to 110 per cent of its design capacity. The project is slated for completion within 18 months. The initiative is a strategic step for India, as the country currently imports its helium, a critical resource used in fields like space exploration, cryogenics, and medical technologies. This move strengthens the vision of "Atmanirbhar Bharat" (self-reliant India) by building indigenous capabilities in high-value gases.

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About Company

Oil & Natural Gas Corporation Ltd (ONGC) stands as India's largest crude oil and natural gas company, playing a dominant role by contributing approximately 71 per cent of the nation's domestic production. Specializing in the exploration and production of these vital resources, ONGC is also involved in various international joint ventures for oil fields across countries such as Vietnam, Norway, Egypt, Tunisia, Iran, and Australia. Domestically, the company is responsible for roughly 70 per cent of India's crude oil output and about 84 per cent of its natural gas production.

The company has a market cap of nearly Rs 3 lakh crore and has been maintaining a healthy dividend payout of 38 per cent. The shares of the company have a PE of 8.3x whereas the industry PE is 11x. The stock is up by 16 per cent from its 52-week low of Rs 205 per share. The President of India holds 58.89 per cent stake and Life Insurance Corporation of India (LIC) holds 9.29 per cent stake.

Disclaimer: The article is for informational purposes only and not investment advice.