As a global recession and slowing inflation lower the cost of credit, India’s largest energy explorer Oil & Natural Gas Corp. (ONGC) plans to borrow Rs 200 bln (US$4 bln) to fund projects. The loans include Rs 88 bln to be raised in the next couple of months for a planned chemical venture in Gujarat.
The money raised will be used in following projects : a power plant in Tripura, expansion of a refinery operated by unit Mangalore Refinery & Petrochemicals Ltd. in Karnataka. ONGC and partner Gujarat State Petroleum Corp. plan to spend Rs 124 bln to set up the chemical plant at Dahej, which is scheduled to start production by 2012. The borrowing plan excludes US$1 bln raised in January by ONGC Videsh Ltd. to fund the acquisition of Imperial Energy Plc.