Date:01/11/2007 URL: http://www.thehindu.com/2007/11/01/stories/2007110156411800.htm

Business

ONGC in talks with Hinduja group

Special Correspondent

NEW DELHI: Oil and Natural Gas Corporation (ONGC) is in talks with the Hinduja group for forging a strategic partnership in its proposed $6 billion refinery at Kakinada in Andhra Pradesh.

“We have not had any formal talks with them but informal discussions have taken place,” ONGC Chairman and Managing Director, R.S. Sharma told newsmen at the three-day international GO India Gas and Oil Exposition and Conference organised at Pragati Maidan here.

Mr. Sharma said the project was expected to cost Rs. 24,000-25,000 crore and would take three to four years to build. “We will decide on the project once sensitivity studies are complete,” he added.

The company has sought fiscal incentives like exemption from local levies and free of cost land.

Mr. Sharma said the project was proposed to be built by a special purpose vehicle, Kakinada Refinery and Petrochemicals Ltd., in which ONGC will have a 46 per cent stake. Another three per cent will be held by ONGC’s subsidiary Mangalore Refinery and Petrochemicals Limited. The remaining stake would be held by a strategic partner and financial institutions.