The Hindu Business Line : PM's nod for ONGC project in Mangalore

THE Prime Minister, Dr Manmohan Singh, has given the nod for the Rs 21,000-crore investment of Oil and Natural Gas Corporation (ONGC) in LNG, power and petrochemicals project in Mangalore.

A communication issued from the Prime Minister's Office states that the Prime Minister has approved the various projects at Mangalore under the memorandum of understanding between ONGC and the Karnataka Government.

Last year, the State-owned firm had signed an MoU with the Karnataka Government for projects worth Rs 25,000 crore but could not proceed because of objections raised by the Ministry of Petroleum, which had contended that ONGC made the investment plan ``without approval of the Government and company board."

Mangalore Refinery and Petrochemicals Ltd, a subsidiary of ONGC, would be the implementing agency for the entire project while ONGC would provide finances and guarantees, the official communication points out, and adds that LNG imports will be contracted by ONGC.

Besides, it has also approved ONGC as co-promoter of the Mangalore Special Economic Zone with the State Government. ONGC has also been allowed to float wholly owned subsidiaries for petrochemicals and power project and "float equity in the market and/or to non-competing technology partners, retailing a minimum 26 per cent and exclusive management control."

When contacted by Business Line, Mr Subir Raha, Chairman and Managing Director, ONGC, said that this was a major project.

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