Petroleum assets leased out by a company undergoing insolvency proceedings would be exempt from moratorium under the insolvency and bankruptcy code, according to a latest notification by MCA. The new rule aims to ensure national assets in the petroleum sector don't lie idle, a senior official said.
This would effectively empower the petroleum ministry to repossess such assets such as the oil wells, and give them to another party.
Supporting the government move, a Petroleum and Natural Gas Ministry official said, “We are working to expand India's oil production at a fast clip at a time when global supplies continue to be stressed by geopolitics . At such a juncture, it isn't prudent to have oil wells fall inactive if