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Our Bureau

Scope for other investors in downstream industries seen

Mangalore , March 19

Oil and Natural Gas Corporation (ONGC) Ltd's investments in the Mangalore Special Economic Zone (SEZ) project will be in the range of more than Rs 50,000 crore, if the project proposals are taken into account.

With an equal amount of investment envisaged from other investors in downstream projects, the Mangalore SEZ project may attract nearly Rs 1,00,000 crore investments over the next few years.

However, ONGC's investments in the projects were at Rs 21,000 crore while signing an agreement with the Karnataka Government in August 2004. ONGC, through its subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL), will invest in the project.

In an informal chat with presspersons on the sidelines of a programme organised by the International Society for Krishna Consciousness in Mangalore on Sunday, Mr Subir Raha, CMD, ONGC and Chairman of Mangalore SEZ Co Ltd, said that these investments do not include the proposed LNG plant under the SEZ project.

Giving a break-up of ONGC-MRPL's investments in the Mangalore mega project, he said that an investment of Rs 13,000 crore has been cleared for expansion of refinery and aromatics complex. A DFR (detailed feasibility report) is ready for the olefins complex. The investment in this project will be in the range of Rs 12,000 crore.

Stating that the MRPL is planning a second refinery with a capacity of 15 million tonnes per annum, he said the new refinery with petrochemicals would cost at least Rs 25,000 crore to Rs 30,000 crore.

Asked about the LNG (liquefied natural gas) component in the Mangalore SEZ project, he said that plans are on in this regard. Mr Raha said that the Principal Secretary to the Prime Minister had held a meeting with all the ministries concerned, ONGC and Karnataka Government on the Mangalore mega project on March 9

The State has been requested to depute a senior officer to take over as the Chief Executive Officer of the Mangalore SEZ Company Ltd. The officer can also become the nodal officer for SEZ development. "The Karnataka Chief Minister and the Chief Secretary have assured me that they will depute a senior officer for this purpose," he said.

It has now been agreed that the Union Ministry of Commerce will appoint an exclusive development commissioner for Mangalore SEZ. At present, the Development Commissioner is operating from Kochi.

He said the consent of the Union Shipping Ministry for New Mangalore Port Trust's (NMPT) participation in the SEZ is a positive development.

IL&FS, which is a co-developer will take up physical development of land, water, electricity etc. As soon as SEZ CEO is in position, the SEZ Company would be inviting requests for proposals (RFPs) from other investors to invest here, he added.

Related Stories:
Raha to head Mangalore SEZ Co
ONGC sets up SPV for Mangalore SEZ

More Stories on : Petroleum | Infrastructure | Karnataka | Oil & Natural Gas Corporation Ltd

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