The Hindu Business Line : `Permit ONGC to carry out projects at Mangalore SEZ'

THE Kanara Chamber of Commerce and Industry (KCCI) has urged the Union Government to allow the Oil and Natural Gas Corporation (ONGC) to accomplish the projects envisaged by it in the proposed coastal special economic zone (SEZ) in Mangalore.

In a letter to the Prime Minister, Dr Manmohan Singh, copies of which were released to the press here, the chamber said that ONGC has proposed to set up large projects in the SEZ mooted by KCCI. Investments proposed by ONGC in the project are based on imported LNG (liquefied natural gas).

It said that Mangalore Refineries and Petrochemicals Ltd (MRPL)-ONGC has proposed to set up a 10-million-tonne per annum (mtpa) LNG terminal in phases of 5 mtpa. The imported LNG will be processed in C2/C3 separation unit and re-gasification unit. The New Mangalore Port Trust has allotted 140 acres of land in the port area to set up these facilities.

The letter said that MRPL-ONGC combine has also proposed to set up a 1,500-MW gas-based power plant, in phases of 500 MW each, in the land allotted by the Karnataka Industrial Area Development Board. The estimated cost of the project is Rs 5,000 crore.

It said that ONGC should be allowed to implement the projects, which are envisaged by it, under its own management as peculiarities and nuances of natural gas business demand it to be so.

Stressing the need for the management of the entire process within the ambit of the corporate giant, the letter said that collaboration with other entities should not be considered necessary at this stage.

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