Hinduja keen on Kakinada refinery sans ONGC
Hinduja group plans to go ahead and set up a Rs 25,600 crore
refinery at Kakinada, Andhra Pradesh, even if its indecisive project partner,
Oil and Natural Gas Corporation Ltd, opts out.
"We have given in writing to the Andhra Pradesh Chief Minister that we are keen
to set up the project, with or without ONGC," Hinduja Group Chairman G.P.
Hinduja told PTI.
ONGC had put a slew of conditions, including Andhra Pradesh government giving
950 acres of land free of cost, sales tax exemption and fiscal concessions
equivalent to a special economic zone, for setting up the 15 million tonne
refinery-cum-petrochemical project at Kakinada.
The concessions would cost the state government about Rs 16,000 crore. Even if
ONGC were to join the project, the London-based Hinduja group is keen to take a
majority stake, he said.
However, Hinduja was optimistic about the economic feasibility of the project
and said the group has also informed the state government of the source of crude
oil for the refinery.
After the exit of Subir Raha, who had drawn a blueprint to catapult ONGC to
become second largest refinery in the country, ONGC has fettered away the
downstream expansion plans and the new management has taken a dim view of the
It also wants the stated to give free power and water to the project, provide
road and rail connectivity, develop sewage and refinery effluent disposal system
and give communications connectivity to enhance the 10.27 per cent return on
[May 12-18, 2008]