The Rs 35,000 crore SEZ in Mangalore is being set up by Oil and Natural Gas Corporation (ONGC) as anchor co-promoter using a special purpose vehicle owned by its subsidiary Mangalore Refinery and Petrochemicals Limited (MRPL), which will hold a 46% stake. Farmers in the area have been opposing the acquisition of land. They have urged the Government to reject the EIA (Environmental Impact Assessment) report on the project. As per the state government, the Centre has been satisfied with the outcome of the public hearing regarding the Mangalore special economic zone (MSEZ) and a final meeting on the crucial environmental management plan (EMP) of the project has been fixed for February 28. Upon approval at this hearing, work can start on the project. The meeting will be held by the technical committee of the Expert Committee for Infrastructure Development and Miscellaneous Project, set up by the Union Ministry of Environment and Forests. According to the advisor, a total of 1,750 acre, out of the 2500 acre needed for the SEZ, has already been acquired.
Along with ONGC, the other equity-holders are the Karnataka Government, Kanara Chamber of Commerce and Industry and Infrastructure Leasing and Financial Services Limited. ONGC would hold 26%t of the equity in the incorporated company. The State government would hold 23% and the balance 51% will be jointly owned by KCCI and IL&FS.