(Corrects ONGC Videsh in para 2)
NEW DELHI (Reuters) - A Union cabinet panel on Tuesday approved the conversion to equity of a 50 billion rupee ($755.16 million) loan extended by state-run Oil and Natural Gas Corp (ONGC) to its overseas investment arm.
Oil ministry said the investment will strengthen the capital base of ONGC Videsh (OVL), which is exploring for oil and gas assets in regions including Africa to feed India's rising energy demand.
Reuters reported on the equity conversion in June.
Separately, cabinet approved a part of an urban rail project in the capital city of Uttar Pradesh state as Prime Minister Narendra Modi bets on higher public spending on infrastructure to spur economic activity.
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New Delhi will invest 13 billion rupees in the 69.3 billion rupees Lucknow project.
($1 = 66.2110 Indian rupees)
(Reporting by Sankalp Phartiyal, editing by David Evans)
