Date:23/06/2006 URL: http://www.thehindubusinessline.com/2006/06/23/stories/2006062302990900.htm

Back Manmohan to lay stone for ONGC's petrochem complex today

Our Bureau

Mangalore , June 22

The Prime Minister, Dr Manmohan Singh, will lay the foundation stone for the mega petrochemical complex of Oil and Natural Gas Corporation here on Friday.

Dr Singh will lay foundation stone for the Rs 4,900-crore aromatic complex of ONGC at Permude in Mangalore on Friday. The petrochemical complex project will be executed through a special purpose vehicle (SPV) of ONGC. Aromatic complex is a part of the petrochemical complex.

While ONGC will hold 46 per cent stake in the SPV, its subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) will hold three per cent. Financial institutions and banks will hold the remaining 51 per cent stake.

The advantage of this project is that it is situated in a strategic position on the west coast of the country. The complex is only a few km away from the airport and the New Mangalore Port.

Downstream industries will get major benefit of the petrochemical complex, as several opportunities are likely to come in their way after the commissioning of the complex. This will also add to the job opportunities in the region, say industry observers here.

Several Firsts

Several firsts are attached with this project, as this will be the first Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) of the country.

This project is the first mega petrochemical project in Karnataka, and also the first mega project outside Bangalore. Investments to the tune of Rs 45,000 crore are expected in various petrochemical projects.

Incidentally, this will be the first visit of Dr Singh to Mangalore after becoming the Prime Minister.

Dr Singh will lay the foundation stone at 12 noon.

Mr H.D. Kumaraswamy, Chief Minister of Karnataka, Mr Murli Deora, Union Minister of Petroleum and Natural Gas, and Mr B.S. Yediyurappa, Deputy Chief Minister of Karnataka, will be present on the occasion.