ONGC

New Delhi, Jun 23 (UNI) Country's largest oil and gas producer Oil and Natural Gas Corporation (ONGC) and Mangalore Refinery and Petrochemicals Ltd (MRPL) today said they have withdrawn from the proposed Rs 31,000 crore refinery and petrochemical plant and the Special Economic Zone at Kakinada in Andhra Pradesh.

''Considering the various hiccups in the projects, the management of ONGC and MRPL have decided to withdraw from the two projects--Kakinada Refinery and Petrochemicals Ltd (KRPL) and Kakinada Special Economic Zone (KSEZ)--with immediate effect,'' a company statement said.

ONGC had signed an agreement with the Andhra Pradesh government in September 2006 to set up the projects.

The projects are a part of a Petroleum, Chemical and Petrochemical Investment Region (PCPIR) which runs from Vishakapatnam to Kakina.

ONGC's proposed equity participation, through its subsidiary MRPL, was 46 per cent in KRPL and 26 per cent in KSEZ. IL &FS owns 51 per cent stake and the Andhra Pradesh government owns three per cent stake through Kakinada Seaports in the KRPL project.

Various companies such as the Hinduja group, Reliance Industries and Essar Oil have reportedly shown interest in the KRPL project.

UNI SR RKM RN1958