Financial Daily from THE HINDU group of publications
Tuesday, Aug 30, 2005
Financial Daily from THE HINDU group of publications Tuesday, Aug 30, 2005 |
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Corporate
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New Projects With Oil Ministry's stand on ONGC's plan for MRPL — Mangalore SEZ investment proposals in limbo A.J. Vinayak
Mangalore , Aug. 29 THE memorandum of understanding between Oil and Natural Gas Corporation Ltd (ONGC), the Karnataka Government and the Kanara Chamber of Commerce and Industry (KCCI) - in which ONGC had promised to invest around Rs 21,000 crore in various petrochemical projects of the proposed special economic zone (SEZ) in Mangalore - completes a year on August 30. The investment proposals are hanging in balance because of the August 17 order of the Petroleum Ministry to ONGC, in spite of clearances by the Prime Minister's Office. The order states that the "modalities for financing and funding of such subsidiaries in the area other than exploration and production sector as well as the role that Mangalore Refinery and Petrochemicals Ltd would have in the implementation of these projects would be decided by ONGC, in consultation with Ministry of Petroleum and Natural Gas." The July 15 order of the PM's Office said that MRPL, a subsidiary of ONGC, would be the implementing agency for the entire project while ONGC would provide finances and guarantees. It added that LNG imports would be contracted by ONGC. It had also approved ONGC as co-promoter of the Mangalore special economic zone with the State Government. ONGC was 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 the Prime Minister cleared the investment proposals, industry leaders in the region had expressed happiness stating that Mangalore will be developed as a "hub for hydrocarbon trade." When contacted, KCCI office-bearers said it was too early to comment anything on the subject. They can answer after they get the full details on the latest developments. In fact, KCCI was pressuring the Karnataka Government to form a special purpose vehicle to implement the SEZ project in Mangalore, after the PMO cleared ONGC's investments. They were also urging the Karnataka Government for convening a stakeholders meeting in this regard. Unlike other projects, politicians of the region - irrespective of their party cadres - are united in bringing ONGC's investments to the region. People of the region are still hopeful that ONGC's investments will come to Mangalore, in spite of all hurdles. But they do not know, how many `anniversaries of MoU signing' they have to observe before getting those investments.
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