ONGC exits Kakinada project

There had been various issues affecting the steering of projects of Kakinada Refinery and Petrochemicals Ltd KRPL and and Kakinada Special Economic Zone KSEZ, the statement said.

Considering these factors, the management of ONGC and MRPL felt that it would be appropriate not to continue as equity partners in these two projects, the statement said.

ONGC8217;s was expected to own 46 per cent in KRPL and 26 per cent in KSEZ.

Essar, Hindujas and GMR are said to be in race for ONGC8217;s stake.

KRPL, the special purpose vehicle set up for implementing the 15-million tonne per annum refinery-cum-petrochemical project, will now have Infrastructure Leasing and Financial Services Ltd IL038;FS and Kakinada Seaports together holding 46 per cent stake and APIIC the remaining 3 per cent.

Sources said ONGC had laid down a slew of conditions, including Andhra Pradesh government giving 950 acres free of cost and sales tax exemption and fiscal concessions equivalent to an SEZ for setting up the project at Kakinada.

The concessions would cost the state government about Rs 16,000 crore.