ONGC gains on hopes of reduced royalty burden

MUMBAI: Shares of ONGC were in action on reports that the state-run oil company major may get permission from the Centre to pay only a third of its total royalty obligation to the Rajasthan government on the revenues earned from the oil blocks owned by Cairn India, removing a possible obstacle to the Vedanta-Cairn deal and saving the oil explorer an annual outgo of $350 million.

At 11:30 am, the stock was at Rs 1355.30, up Rs 37.10 or 2.81 per cent. The index touched a high of Rs 1359.90 and low of Rs 1325.10 in trade so far.