Mangalore SEZ Ltd -- the special purpose vehicle to implement the Mangalore petrochemical-based special economic zone -- was incorporated on 24 February 2006.

ONGC will hold 26 per cent equity in the newly-formed company. The Karnataka government, through its Karnataka Industrial Area Development Board (KIADB) will hold 23 per cent and the remaining 51 per cent will be jointly held by Kanara Chamber of Commerce & Industry and Infrastructure Leasing and Financial Services Ltd.

The New Mangalore Port Trust (NMPT) has also shown an interest in the SEZ, but is waiting for approval from the ministry of shipping, road and transport. If NMPT gets the ministry's approval, the KIADB and NMPT will together hold 23 per cent in Mangalore SEZ Ltd.

The proposed SEZ will be spread over an area of around 2,450 acres, of which 840 acres had already been acquired by the KIADB. The main projects to be developed in the SEZ include an LNG regassification plant, a power plant, and banking and telecommunications facilities.

ONGC will invest Rs.35,000 crore in the project, including the investment to be made by MRPL (ONGC's subsidiary) in setting up petrochemical units in the SEZ.

Also See:

MRPL proposes Rs.12,800 crore refinery upgrade project (16-Feb-06)