Gail to pick up stake in OPaL

PROJECTSTODAY: GAIL(India) Ltd plans to pick up 10 per cent stake in ONGC Petro Additions' (OPaL) petrochemical complex project at Dahej in Gujarat. The size of the deal is pegged at Rs 1,500-2,000 crore.

Petronet LNG Ltd is also aiming to pick up 5 per cent stake in the project. Other state public sector units, including Gujarat Narmada Valley Fertiliser Ltd, have also evinced interest in picking up equity in the project.

At present, Oil and Natural Gas Corporation Ltd holds 26 per cent stake in OPaL while Gujarat State Petroleum Corporation Ltd has 5 per cent equity. The company has roped in ABN-Amro and Rothschild for the purpose.

The projected cost of the petrochemical complex unit was revised in 2007 to Rs 12,440 crore. However, the recent rise in cost of input materials, including rising crude oil prices, will see the project cost escalate by at least 20-30 per cent.

Published in Projectmonitor issue date: 25 August 2008