ONGC, GAIL, GSPC JV OPaL to go on stream in 2012

Oil and Natural Gas Commission (ONGC), Gas Authority of India Ltd, (GAIL) and Gujarat State Petroleum Corporation (GSPC) promoted joint venture ONGC Petro-additions Ltd (OPaL), is slated to approach the capital market in 2012 with an initial public offering (IPO) for the Rs12,440-crore mega petrochemical complex.

ONGC chairman and managing director R S Sharma who also heads the joint venture said the mega petrochemical complex would produce 2 million tonnes of products including polyethylene, polypropylene, benzene every year.

He said contracts worth Rs8,400 crore for the project had already been awarded while Rs2,600-crore worth of the project work had been awarded under tender. He added that Rs4,000 crore worth of work was yet to be slotted.

The petrochemical complex is the largest one of its kind in India and is scheduled for commissioning in December 2012.

Talking about finance for the mega petro-chemicals complex, Sharma said the project cost had been estimated at Rs12,440 crore but it could go up. The debt-equity ratio for the project funding is 70:30 and debt worth Rs8,706 crore had been tied up with 26 banks.

He added that around 10 to 12 downstream units with total investment of over Rs2,000 crore would come up which would offer direct and indirect employment to a large number of people.