ONGC and Karnataka Govt to sign Rs 21,000 cr petrochem MOU

17-Jan-06

A Memorandum of Understanding (MoU) between Oil and Natural Gas Corporation (ONGC) and the Karnataka Government to set up the Rs 21,000 crore petrochemicals project in Mangalore is to be signed. The petro complex comprises a Liquefied Natural Gas (LNG) terminal, a unit for the extraction of polymers and a 1,500 MW gas-based power plant. It would also have a special economic zone and a gas pipeline on the Mangalore-Hassan-Bangalore-Chennai route. The LNG terminal is to be set up within the New Mangalore Port Trust premises, for the import of about 12 mln tpa of LNG. This stage has been reached after the Petroleum Ministry has cleared the project as per the original plans. The project has seen delays as the Ministry had opposed ONGC's involvement in the project so that it can execute only those projects that came under its core areas of activity. Despite the State Government taking up the matter to the Prime Minister's level, the project has been delayed.