ONGC shelves plan to build greenfield unit
New Delhi (PTI): State-run Oil and Natural Gas Corp (ONGC) has shelved plans to build a new 15-million tonne refinery adjacent to its subsidiary Mangalore Refinery and Petrochemicals Ltd., Chairman R.S. Sharma said on Wednesday.
MRPL had planned to build a 15-million tonne a year grassroot refinery and a mega petrochemical complex after expanding its current unit to similar capacity by October 2011.
"These plans after review, are not being pursued. MRPL balance sheet does not have the strength to support a greenfield refinery," he told reporters here.
MRPL will, however, continue to work on expanding its current 9.69 million tonnes unit to 15 million tonnes by October 2011 at a cost of Rs 12,412 crore, he said.
Sharma said ONGC had in June last year also exit from a similar Rs 25,600-crore grassroot refinery project at Kakinada in Andhra Pradesh.
ONGC, through its subsidiary MRPL, was to hold 46 per cent stake in Kakinada Refinery and Petrochemicals Ltd (KRPL) and 26 per cent in Kakinada special economic zone. The company has walked out of both the projects.
Andhra Pradesh government has replaced ONGC with GMR Group in the project.