PM to kick off multicrore ONGC project in Mangalore

Mangalore, June 22 (UNI) Prime Minister Manmohan Singh will be laying the foundation stone for the Rs 4,900 crore aromatic hydrocarbons complex here tomorrow, marking Oil and Natural Gas Corporation (ONGC)'s foray into petrochemical sector.

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 and Petrochemicals Investment Region in the country.

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

District Secretary Ryot Sangh Deepak Permude said the districtadministration 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 member of Parliament Manorama Madhwaraj and legislator Krishna Palemar, demanded immediate action against 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 the compensation amount was announced.

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 MA RG YA KP1648