ONGC to park Rs 35,000 cr in Mangalore SEZ

Oil and Natural Gas Corporation, along with its subsidiary Mangalore Refinery and Petrochemicals Ltd, plans to invest Rs 35,000 crore over the next five years in the Mangalore special economic zone.

A special purpose vehicle, Mangalore SEZ Ltd, has been set up in Bangalore for developing the special economic zone. ONGC, in a statement, said the company will hold 26 per cent equity in the newly-formed company.

The Karnataka government, through its Karnataka Industrial Area Development Board will hold 23 per cent and the remaining 51 per cent will be jointly held by Kannara Chamber of Commerce & Industry and Infrastructure Leasing and Financial Services Ltd.

The New Mangalore Port Trust has also shown an interest in the SEZ, subject to the approval of 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 main projects to be developed in the SEZ include an LNG regassification plant, a power plant, and banking and telecommunications facilities. The SEZ will be spread over an area of around 2,450 acres, of which 840 acres have already been acquired by the KIADB.