New Delhi: State-run explorer Oil and Natural Gas Corp. Ltd (ONGC) on Monday announced its exit from the Rs25,600 crore Kakinada refinery project.
The board of Kakinada Refinery and Petrochemicals Ltd (KRPL) met later in the day and inducted infrastructure major GMR Group in the project in place of ONGC.
ONGC, through its subsidiary Mangalore Refinery and Petrochemicals Ltd, was to hold 46% in KRPL and 26% in Kakinada Special Economic Zone. The company has now walked out of both the projects.
“There have been various issues affecting the steering of these projects...considering these factors, the management feels that it will be appropriate not to continue as equity partners in these two projects,” ONGC chairman and managing director R.S. Sharma said.
A GMR spokesperson said: “We have given an expression of interest for 51% stake in the refinery. It is in line with the group’s intent to expand business opportunities in the oil and gas sector.”