New Delhi: State-run Oil and Natural Gas Corporation (ONGC) will seek concession from Andhra Pradesh government for setting up a 15 million tonne refinery at a cost of Rs19,000 to Rs20,000 crore at Kakinada.
The refinery, currently promoted by ONGC subsidiary MRPL, is proposed to be taken on the books of ONGC since the balance sheet of MRPL is not strong enough to finance the project, company Chairman R. S. Sharma told reporters here today.
Under the existing structure, MRPL will hold 46% stake in the Kakinada Refinery and Petrochemicals Limited (KRPL), the company that will build the green field refinery at Kakinada SEZ.
Sharma said KRPL may go for an initial public offering in two years time and may divest about 26% stake.
“We have not yet firmed up the IPO plans but we will look at it at some point of time,” he said.
The Kakinada Refinery was originally conceived as a 7.5 million tonnes refinery but the size was found to be not viable and has been raised to 15 millon tonnes now.