The Oil Industry (Development) Act, 1974
6. Functions of the Board.
- Subject to the provisions of this
Act and the rules made there under, the Board shall render, in such manner, to
such extent and on such terms and conditions as it may deem fit, financial and
other assistance for the promotion of all such measures as are, in its opinion,
conducive to the development of oil industry.
- Without prejudice to the generality
of the provisions of sub-section (1), the Board may render assistance under that
sub-section by-
- making grants or advancing loans to
any oil industrial concern or other person who is engaged or is to engage in any
activity referred to in clause (k) of section 2;
- guaranteeing on such terms and
conditions as may be agreed upon loans raised by any oil industrial concern or
other person which are repayable within a period not exceeding twenty-five
years and are floated in the market or loans raised by an oil industrial
concern or other person from any bank which is a scheduled bank, or a State
co-operative bank, as defined in the Reserve
Bank of India Act, 1934 (2 of 1934);
- guaranteeing on such terms and
conditions as may be agreed upon deferred payments due from any oil industrial
concern or other person in connection with import of capital goods from outside
India or in connection with purchase of capital goods within India by such
concern or other person;
- guaranteeing on such terms and
conditions as may be agreed upon loans raised from, or credit arrangements made
with, any bank or financial institution in any country outside India by any oil industrial concern or
other person in foreign currency:
Provided that no such guarantee shall
be given without the prior approval of the Central Government;
- underwriting the issue of
stock, shares, bonds or debentures by any oil industrial concern and retaining
as part of its assets any stock, shares, bonds or debentures which 196.it may have
to take up in ful filment of its obligations there to;
- acting as agent for the Central
Government or, with its approval, for any overseas financial organisation or
credit agency in the transaction of any business with any oil industrial
concern in respect of loans or advances granted, or debentures subscribed by
the Central Government or such organisation or agency;
- subscribing to the stock or shares
of any oil industrial concern;
- subscribing to the debentures of any
oil industrial concern repayable within a period not exceeding twenty - five
years from the date on which they are subscribed to:
Provided that nothing contained in
this clause shall be deemed to preclude the Board from subscribing to the
debentures of any oil industrial concern, the amounts outstanding thereon may
be convertible at the option of the Board into stock or shares of that concern
within the period the debentures are repayable.
Explanation.- In this clause, the
expression, "amounts outstanding thereon" used in relation to any
loan or advance shall mean the principal, interest and other charges payable on
such loan or advance as at the time when the amounts are sought to be converted
into stock or shares.
- Without prejudice to the generality
of the provisions of sub-section (1), the measures for the promotion of which
the Board may render assistance under that sub-section may include measures for
or by way of-
- prospecting for and exploration of
mineral oil within India (including the continental shelf
thereof) or outside India;
- the establishment of facilities for
production, handling, storage and transport of crude oil;
- refining and marketing of petroleum
and petroleum products;
- the manufacture and marketing
of petro-chemicals and fertilisers;
- scientific, technological and
economic research which could be, directly or indirectly, useful to oil
industry;
- 197.experimental or pilot
studies in any field of oil industry;
- training of personnel, whether in India or outside, engaged or to be
engaged in any field of oil industry, and such other measures as may be
prescribed.
- The Board may charge such fees or
receive such commission as it may deem appropriate for any services rendered by
it in the exercise of its functions.
- The Board may transfer for
consideration any instrument relating to loans or advances granted by it to any
oil industrial concern or other person.
- The Board may do all such things as
may be incidental to or consequential upon the discharge of its functions under
this Act.
Back