The Bangalore-based GMR group is likely to partner the Oil and Natural Gas Corporation (ONGC) in its Rs31000 crore refinery and petrochemical plant in Kakinada, joining the list of prospective partners involved in the project.
GMR enters into the venture alongside the Hinduja group, Reliance Industries and Essar Oil. Currently, ONGC’s subsidiary Mangalore Refinery and Petrochemicals holds a 46% stake in Kakinada Refinery and Petrochemicals (KRPL), IL&FS holds 51% and the remaining stake is held by Kakinada Seaports.
The refinery, along with the petrochemical plant, is proposed to be set up in a special economic zone in Kakinada with an initially planned capacity of 7.5 mpa.
The board of KRPL, the company implementing the 15 million tpy refinery and a 450,000 tpy petrochemical plant, will meet on 23rd June to take a decision on the stake sale.
Following feasibility studies, ONGC decided to double the capacity to 15 mtpa so sale of larger volumes of products could make the refinery viable. Feasible studies for the larger refinery are believed to be still ongoing.