ONGC working on Kakinada refinery

The Oil and Natural Gas Corporation of India (ONGC) is working out modalities to make its proposed refinery at the Kakinada Special Economic Zone (KSEZ) a reality.

ONGC has held discussions with the officials of Kakinada Sea Ports Limited (KSPL) on issues relating to the refinery and the KSEZ. Another meeting is scheduled later this month.

Addressing mediapersons after reviewing the performance of the Rajahmundry Asset here on Sunday, RS Sharma, chairman and managing director of ONGC, said the company had earlier proposed to set up a 7.5-million tonne per annum refinery at Kakinada, but later came to a conclusion that it would be best to enhance the production capacity of the proposed project to avoid chances of economic unviability.

"We have always insisted on economic viability, and therefore have decided to double the capacity of the proposed refinery. We hope that a positive result would emerge out of our efforts and the refinery will become a reality," Sharma said.

Referring to the Rajahmundry Asset, he said the capacity of the Tatipaka mini-refinery would be doubled from the present 66,000 tonne. The company has already invited tenders for the purpose.

ONGC Rajahmundry Asset had given Rs 933.38 crore to the state government between 2001 and 2007.

It spent Rs 74.92 crore in Krishna, West and East Godavari districts in the last two decades on infrastructure, laying and improving roads and bridges and towards socio- economic and community development.