New Delhi: There could be excellent news for retail capitalists in ONGC stock. The company is planning a stock split besides giving bonus to its shareowners. The company declared a bonus in 2006-07.

In line with the recent share value of ONGC, chairman and managing director RS Sharma stated that the company was aware of the worries of small capitalists and would prize them eventually.

At the company’s AGM, Mr. Sharma told, “We will consider a bonus issue and a share split at an appropriate time.”

On news of the stock split and bonus issue, ONGC scrip earned 6.25% on the National Stock Exchange (NSE). The stock price ascended to Rs 903.8 from its last close of Rs 850.6 on Tuesday.

ONGC, comprising its divisions, ONGC Videsh (OVL) and MRPL is all set to invest Rs 121,318 crore in the 11th Plan period (2007-12), which is 61% up from Rs 75,380 crore in the earlier plan. OVL is likely to invest Rs 45,334 crore in the 11th plan, as compared to Rs 25,052 crore in the last plan period. MRPL’s share of investment for the 11th Plan period is Rs 8,316 crore as against Rs 765 crore in the 10th Plan.

In the setting of market price discovery of KG basin gas by RIL, ONGC has regenerated its demand for growing the price of government-regulated (APM) gas. It demands the APM gas cost should also reveal market realisms.

Mr. Sharma said ONGC would like to get market prices for the gas produced from its new discoveries.

“We hope we should be able to get a fair deal as the Reliance issue has been resolved, and we expect the government to soon take a decision on this,” he said.

Citing reference of the Tariff Commission, Mr. Sharma said that the commission had suggested ONGC’s gas to be traded at Rs 3,600 or $2.5 per million British thermal units (mmBtu), as compared to the existing APM rate of Rs 3,200/mmBtu.

ONGC says that it will commence production from its ultra deepwater gas discovery in the KG basin by 2012-13. “The company is firming up an appraisal plan for integrated development of discoveries in shallow-to-deepwater (northern) part of the KG-DWN-98/2 block along with other fields in adjoining nomination acreages, which is projected to yield 12-15 million cubic meters per day gas by 2012-13,” Mr Sharma said.