ONGC, MRPL naphtha for M'lore petro project

The prime minister's principal secretary is scheduled to conduct a meeting on March 9 of all the stakeholders in the Rs 25,000-crore Mangalore mega petro project.

Aimed to fix a time-bound action plan for the project, the meeting will finalise on the key features of the project, including a petrochemicals (aromatic) complex based on naphtha supplied by Mangalore Refinery and Petrochemicals Ltd and ONGC. A feasibility report on the project estimates an investment of Rs 13,000 crore.

A special economic zone (SEZ) is proposed to be developed in Mangalore by a special-purpose vehicle floated by the MRPL-ONGC combine, the Karnataka Industrial Areas Development Board (KIADB), the Kanara Chamber of Commerce and Industry, IL&FS and New Mangalore Port Trust.

The zone will require 6,500 acres, of which 1,000 acres are supposed to be available with the KIADB. Another 639 acres have been identified by it, while 140 acres may be in the Mangalore port area.

The secretaries of key ministries, such as petroleum, environment and forests, shipping, and chemicals and petrochemicals, will attend the meeting. Representatives of the Karnataka government and ONGC, which is to implement the project, would also attend the meeting, sources said.

A preliminary feasibility report to build a 15-million-tonne refinery has also begun.

When the project received a go-ahead from the Prime Minister's Office in July 2005, building an LNG terminal and developing a 1,500-MW gas-based power plant were envisaged., laying a gas pipeline on the Mangalore-Hassan-Bangalore-Chennai route, constructing a unit for the extraction of polymers,

To take the mega power project to the next phase, the Karnataka government would have to make available some basic requirements, said sources.

It was up to the state government to acquire land and right of way, make arrangements for an assured supply of water and power till the SEZ's power plant is functional, and execute a deed of assurance with ONGC to ensure a protected fiscal regime for the refinery.

In addition to the state government, different ministries of the central government are required to upgrade infrastructure in Mangalore to facilitate the project.