The Hindu Business Line : Chamber plea to endorse ONGC's investment proposal

THE Kanara Chamber of Commerce and Industry (KCCI) has written letters to the Prime Minister, Dr Manmohan Singh, and the Union Petroleum Minister, Mr Mani Shankar Aiyar, requesting them to endorse the Oil and Natural Gas Corporation's (ONGC) proposal for investment in coastal Karnataka.

The copies of the letters were released to the press here recently .

In a letter to Dr Singh, the KCCI President, Mr A. Srinivasa Rao, said that ONGC's proposed investments in Mangalore are not only beneficial to Karnataka but also to the entire nation.

Apart from serving the sovereign customers, ONGC's proposed investments would ensure productivity of the capital and profitability for the company.

Clarifying the nature of ONGC's involvement in Special Economic Zone in Mangalore, he said it would be limited to promoting a special purpose vehicle (SPV).

The SPV will carry on the function of SEZ, governed by the proposed SEZ Act of the Union and the State Governments.

ONGC's investment decisions in the SEZ — by setting up power plant, LNG terminal, etc — are governed by merit and will be addressed when the techno-economic surveys are done and feasibility is determined.

He said there would be no grounds for any apprehension or doubts in this regard.

In another letter to Mr Aiyar, Mr Rao said, "If Indian Oil Corporation can engage in backward integration by drilling and extraction of oil, we see no reason why ONGC should be prevented from forward integration."

He requested the Minister to visit Mangalore to assess the situation with the Karnataka Government and the citizens of Mangalore.

More Stories on : Industry Associations | Petroleum | Karnataka

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page