Decks have been cleared for the creation of a joint venture company between state-owned Engineers India Ltd (EIL) and Tata Projects Ltd. The company will undertake engineering consultancy and construction projects. According to sources, the oil ministry has approved the project and the project file has been sent to the Cabinet for formal approval.

The joint venture received the administrative go-ahead from the ministry without any objection or resistance, sources said. The approval of the Cabinet is “just a formality”, which would not take much time. After the Cabinet’s nod, a formal agreement would be put in place.

The company is likely to have an initial authorised capital of Rs 15 crore and paid-up capital of Rs 10 crore. The EIL chairman will head the company as its non-executive chief. Tata Projects would nominate a managing director who would oversee the day-to-day functioning of the company.

Last month, EIL — which currently has an order book of Rs 5,000 crore and is providing consultancy to the Rs 19,000 crore HPCL-Mittal joint venture refinery in Bhatinda, Punjab, and BPCL’s refinery in Bina, Madhya Pradesh — had signed a memorandum of understanding with Tata Projects for floating a 50:50 joint venture company for undertaking engineering, procurement and construction (EPC) contracts in India and abroad.

Budding partners

• Joint venture received green signal from ministry without any resistance.

• The company will undertake engineering consultancy and construction projects.

• EIL chairman to head JV company as its non-executive chief. Tata Projects to nominate a managing director to oversee day-to-day functioning