GMR group plans to acquire stake in ONGC refinery

June 23rd, 2008 - 5:43 pm ICT by IANS  

New Delhi, June 23 (IANS) Construction major GMR proposes to invest Rs.310 billion($7.75 billion) to acquire the refinery and petrochemical plant being planned by the state-owned Oil and Natural Gas Corporation (ONGC) in Kakinada in Andhra Pradesh. “Talks are going on and we are looking for a major expansion in this sector,” said a senior GMR official on condition of anonymity. “We cannot reveal anything more at the moment as the amount of stake has not yet been decided,” he added.

The official said what GMR found attractive was that the project would be set up in a special economic zone, and that Kakinada has ports that will bring down logistics cost.

The project - Kakinada Refinery and Petrochemicals (KRPL) - constitutes a 15 million tonne per annum refinery and a 450,000 tonne per annum petrochemical plant.

Mangalore Refinery and Petrochemicals (MRPL), subsidiary of ONGC, holds 46 percent stake in KRPL, infrastructure financing firm IL&FS holds 51 percent, while the remaining stake is held by Kakinada Seaports.

The KRPL board is meeting Monday to take a decision on the stake sale.

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