The centre has approved ONGC''s plan to set up a
petrochemicals complex but has advised against its proposal
to enter the fuel retailing business.
has been permitted to set up units to manufacture petrochemicals
from residue from its refineries and using natural gas,
M S Srinivasan, petroleum secretary,said.
refineries are being converted into refinery-cum-petrochemical
complexes to gain from the high margins on petrochemicals.
Naturally, ONGC would also be encouraged to set up petrochemical
complexes wherever they have refineries or have a natural
gas source," he said.
plans to set up a Rs4,900 crore (Rs 49 billion) aromatic
complex and olefin complex adjacent to its subsidiary
Mangalore Refinery and Petrochemicals Ltd and near its
Dahej petrochemical complex in Gujarat.
said selling petrol and diesel was a losing proposition
and compensation in the form of oil bonds for selling
fuel below the cost of production was only available
to public sector oil retailers -- IOC, HPCL, BPCL and
such compensation mechanism is available to new players
business, including ONGC," he said, adding that
the company board will take appropriate decision keeping
the economics of the business in view.