The
Union government has reportedly approved ONGC's proposal of setting up a 5
million tpa greenfield refinery at Kakinada in Andhra Pradesh. ONGC's
subsidiary, Mangalore Refinery & Petrochemicals Ltd (MRPL), would join hands
with IL&FS and Andhra Pradesh Industrial Development Corporation (APIDC) in
setting up this Rs.5,500 crore petroleum refinery.
IL&FS
has entered into an MoU with APIDC for developing a petroleum refinery at the
Kakinada SEZ. ONGC's equity participation will be restricted to 26 per cent.
Meanwhile,
ONGC is also likely to get government approval for a greenfield petroleum
refinery in Barmer district of Rajasthan. Cairn Energy of UK, which made an
onland crude oil discovery at Barmer, will partner the project. A special
purpose vehicle between ONGC and Cairn Energy would be formed to implement the
project.