The Hindu Business Line : `Mangalore will emerge as hub for hydrocarbon trade'

MEMBERS of trade and industry in Mangalore are enthused by the Prime Minister's clearance for the Oil and Natural Gas Corporation's (ONGC) Rs 21,000-crore investment in the proposed special economic zone (SEZ) project in Mangalore and are foreseeing the emergence of Mangalore as a `hub point for hydrocarbon trade'.

Their expectations are based on the large-scale investment by ONGC in liquefied natural gas (LNG), power and petrochemicals projects in Mangalore. ONGC plans to set up a Rs 7,475-crore petrochemical and aromatic plant, Rs 8,594-crore LNG-based power project, and Rs 3,590-crore C2/C3 recovery plant and LNG terminal. Apart from this, the company also intends to lay pipelines at a cost of Rs 945 crore for transportation of gas.

Capt J.P. Menezes, Vice-President of the Kanara Chamber of Commerce and Industry (KCCI), told Business Line here on Sunday that ONGC's investments will boost the growth of various industries in the region. "Mangalore will become the hub point for hydrocarbon-based industries - right from LNG to downstream projects. Everything related to hydrocarbon sector will be available under a single roof," he said. Stating that ONGC's investments will lead to cascading effect in the region, he said hydrocarbon-based industries would have a good scope in the coming years.

The shipping sector, especially New Mangalore Port, will also see a major growth.

Agreeing with the opinions of Capt Menezes, Mr G. Giridhar Prabhu, SEZ coordinator of KCCI, said the project would give a boost for the industrial development of the region. "Mangalore will be the major hub for hydrocarbon trade," he said.

The Chairman of New Mangalore Port Trust (NMPT), Mr P. Tamilvanan, said that in anticipation of an LNG terminal in Mangalore, the NMPT has already done a study on its location in the port premises. The port has identified land in the outer harbour. ONGC is also doing a study on the location of the terminal. Initially, the LNG terminal will handle five million tonnes of LNG. It may go up in the coming years, he said.

The KCCI President, Mr A. Srinivasa Rao, said that ONGC's investments in the region would lead to the economic development of the region. However, the need of the hour is to form a special purpose vehicle (SPV) for the implementation of SEZ project. "KCCI will write to the Karnataka Industries Minister, Mr P.G.R. Sindhia, to form an SPV and to appoint a nodal officer for that," he said.

Mr Prabhu said, "The anchor investment in the SEZ project will be confirmed with this clearance. We will request the Karnataka Government to convene a shareholders' meeting of SEZ project, and form an SPV." He hoped that the implementation of the project would begin in the early next year.

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