ONGC to set up aromatic complex within Mangalore SEZ

26-Oct-06

At its board meeting, state-owned Oil & Natural Gas Corporation (ONGC) has approved the incorporation of Mangalore Petrochemicals Limited (MPL) to set up a Rs 4,852 crore Aromatic Complex within its Mangalore Special Economic Zone (SEZ) in Karnataka. ONGC will hold 46% equity in MPL, its subsidiary Mangalore Refinery & Petrochemicals Limited (MRPL) will hold 3%, and the balance stake will be held by banks and financial institutions. The complex is estimated to be commissioned towards the end of 2010. This approval for the incorporation of MPL follows its earlier approval to develop SEZ and associated projects at Mangalore, and is being set up as a value-addition initiative to the Naphtha stream of MRPL. ONGC also approved incorporation of Special Purpose Vehicle (SPV) for setting up of a petrochemical complex at Dahej SEZ, at its Board meeting. This is in pursuance to ONGC's proposal to set up a global scale petrochemicals complex with downstream polymer plants within Dahej SEZ with an investment of Rs 13,600 crore. ONGC will hold 26% equity participation of ONGC, GSPC will hold 5% and the balance is to be held by strategic investors and Financial Institutions in the SPV company, named ONGC Petro-additions Ltd. (OPaL). The OPaL complex will be commissioned around mid-2010. ONGC Board also approved the revised capital expenditure outlay of Rs 16,522 crore for 2006-07 against the approved Budget Estimate of Rs 14,354 crore