Date:24/07/2006 URL: http://www.thehindubusinessline.com/2006/07/24/stories/2006072403101500.htm

ONGC preparing ground for Kakinada refinery, SEZ

Our Bureau

Land acquisition process to be completed by October

Though the Government has notified 8,000 acres as required for the SEZ, finally it might exceed 10,000 acres, as 2,000 acres is needed for the refinery.

Kakinada , July 23

ONGC is going ahead with the preparatory work needed for setting up an port-based refinery and special economic zone and, in spite of the teething troubles in obtaining the land, the corporation is confident of executing the project, according to sources.

ONGC signed a memorandum of understanding with the State Government for setting up the refinery and the port-based SEZ. Mangalore Refineries and Petrochemicals Ltd and Kakinada Seaports Ltd, which is operating the Kakinada deepwater port are the other consortium members. Two special purpose vehicles have been set up for the two projects - Kakinada SEZ Ltd and Kakinada Refineries and Petro-chemicals Ltd. Steps are being taken to create the necessary infrastructure. Currently , a team of experts is here from TSG Consultants, conducting a survey for the development of infrastructure.

The land acquisition process for the two projects has not been smooth till now. Initially, there was a lot resistance from the farmers who had to part with their lands. But they were persuaded later.

The authorities have completed the formalities for land acquisition, but the elections to the local bodies have delayed the process, say officials. The KSEZ could directly purchase 2,500 acres of land from farmers at Rs 3 lakh per acre.

Though the Government has notified 8,000 acres as required for the SEZ, finally it might exceed 10,000 acres, as 2,000 acres is needed for the refinery. Till now, 1,800 acres has been acquired in Komaragiri, Moolapeta, Ramanakkapeta, Ponnada and Srirampuram panchayats and 800 acres in Korada, A.V Nagaram and K. Perumallapuram panchayats of Thondangi mandal. Though it is not yet clear where the refinery will be located, it is likely to be in the Kakinada rural mandal, in the vicinity of the port.

It is now estimated that the land acquisition process will be completed by October. The Kakinada Refineries and Petrochemicals Ltd has called for applications, online, for large-scale recruitment.