Leased petroleum assets under IBC to be exempt from moratorium: MCA

New rule aimed at ensuring national petro assets don't lie idle; petroleum ministry can repossess such assets such as oil wells and give them to another party

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