PM to kick off multicrore ONGC project in M'lore

Mangalore, June 22: Prime Minister Manmohan Singh will be laying the foundation stone for the Rs 4,900 crore Aromatic complex here tomorrow, marking Oil and Natural Gas Corporation (ONGC)'s foray into petrochemical sector, amidst stiff opposition from a section of the people.

The petrochemicals complex, to be executed through a Special Purpose Vehicle (SPV) of the ONGC, would be completed in three years after finalisation of the licensor and engineering aspect.

While the ONGC would hold 46 per cent stake in the SPV, its subsidiary Mangalore Refinery and Petrochemicals Limited would have three per cent. The balance 51 per cent would be with financial institutions and banks.

The one million tonnes per annum capacity petrochemicals complex formed part of ONGC's over Rs 35,000 crore investment in the Mangalore Special Economic Zone (SEZ). The Mangalore SEZ would be the country's first Petroleum, Chemicals, Petrochemicals Investment Region in the country.

Meanwhile, villagers of Bajpe, Permude and Kalavar who had given up their land for the project were opposing it demanding proper rehabilitation measures.

District Secretary Ryot Sangh Deepak Permude said the distriction administration had failed to respond to their memorandum seeking a compensation of Rs 15 lakh per acre before taking up the project, job opportunities and systematic rehabilitation measures.

Local BJP leaders Manorama Madhwaraj, MP, and Krishna Palemar, MLA, demanded immediate action the Karnataka Industrial Area Development Board Special and Acquisition Officer for going ahead with the survey of land for the project, despite the Deputy Commissioner giving instructions not to take it up till an announcement was made on the compensation amount.

Elaborate security arrangements had been made in view of the Prime Minister's visit to this coastal city tomorrow. Entry into the Bajpe-Permude-Kalavaru route had been banned for both public and vehicular traffic from 0800 hrs to 1500 hrs.

Dr Singh would arrive here by a special chartered flight.

UNI