Oil and Natural Gas Corp (ONGC), India's largest oil producer, will kick-off its petrochemical foray this week when Prime Minister Manmohan Singh lays the foundation stone for its Rs 4,900 crore Aromatic Complex at Mangalore.
"Prime Minister will on June 23 lay foundation stone of ONGC's one million tonnes per annum capacity Aromatics (Petrochemicals) Complex at Mangalore," a top company official said.
The Petrochemicals Complex would be executed through a Special Purpose Vehicle (SPV) of ONGC. ONGC would hold 46 per cent stake in the SPV while its subsidiary Mangalore Refinery and Petrochemicals Ltd would have 3 per cent. The balance 51 per cent would be with financial institutions and banks.
The Aromatics project would be completed in 3 years after finalisation of the process licensor and engineering, which is expected in a years' time, he said.
Naphtha produced at MRPL, which is being to 15 million tonnes a year from its present nameplate capacity of 9.69 million tonnes per annum at an estimated cost of Rs 8000 crore, would be the feedstock for producing petrochemical building blocks Paraxylene and Benzene.
The official said MRPL also proposes to set up an Olefin complex, for which state-owned Engineers India Ltd (EIL) has been asked to prepared a detailed feasibility report.
The two projects are part of ONGC's over Rs 35,000 crore investment in Mangalore Special Economic Zone, which will house a new 15 million tonnes refinery, power, LNG and petrochemical plants. M-SEZ would be the first Petroleum, Chemicals, Petrochemicals Investment Region (PCPIR) of the country.