Oil and Natural Gas Corporation (ONGC), the country''s
largest oil producer, is making a big foray into petrochemicals.
The oil giant will invest Rs17,000 crore ($3.7 billion)
to set up a petrochemical complex in Mangalore. The
complex will have a capacity of one million tonnes per
on the project is in progress although a function to
lay the foundation stone by Prime Minister Manmohan
Singh was postponed due to bad weather on Friday.
would be investing Rs17,000 crore at the petrochemical
complex here," R S Sharma, ONGC chairman and managing
project includes a Rs4,900 crore aromatic complex and
a Rs12,000 crore olefins complex. While the aromatic
complex will be completed in three years after selection
of the process licensor and engineering partner, state-owned
Engineers India Ltd has been asked to prepare a detailed
feasibility report for the olefin complex.
proposes to execute the project through a special purpose
vehicle (SPV). ONGC will hold 46-per cent stake in the
SPV while its subsidiary Mangalore Refinery and Petrochemicals
Ltd will have three per cent. The balance 51 per cent
will be with financial institutions and banks.
meanwhile, is expanding its naptha production capacity
from 9.69 million tonnes to 15 million tonnes per annum,
at an estimated cost of Rs8,000 crore, Sharma said.
two projects are part of ONGC''s planned investments
Rs35,000 crore in Mangalore''s Special Economic Zone,
which will house a new 15-million-tonne refinery, LNG
and petrochemical units and a power plant.