Hindujas plans to invest in n oil fields

Mumbai: Besides exploration, the group plans to set up refinery, LNG terminal.

Hinduja Group in association with the state-owned Oil and Natural Gas Corporation (ONGC) will invest $20 billion for oil exploration in two fields in Iran, to set up a 15 million tonne refinery in Kakinada and a LNG terminal at Mangalore.

“The two fields in Iran that have been identified for oil exploration are of world-class size. We are looking at setting up a refinery in Kakinada, a LNG terminal at Mangalore,” Hinduja Group Executive Vice-Chairman Subir Raha told PTI.

The investment would be $10 billion in Iran and an equal amount in India for setting up refinery and LNG terminal, he said.

“We have identified which areas we have to focus on now. The next step would be negotiations,” said Raha.

The development of Phase 12 of the giant South Pars field and the Azadegan field would cost $8 billion, while setting up a facility to liquefy the gas for export as LNG will cost another $2 billion.

In India, the consortium plans to invest $5 billion for setting up a 15 million tonnes refinery, $1 billion in LNG terminal and $3-4 billion in power and petrochemical plants.

Hinduja Group has signed memorandum of understandings (MoUs) with two Iranian firms — Petropars and PetroIran — which have been given the fields. ONGC Videsh, overseas arm of ONGC, and Hinduja’s Ashok Leyland Project Services are negotiating an agreement with Naftiran Intertrade Co and Petropars.

“We would be sharing the past costs and future costs. Both the parties would invest. Who will invest how much would depend on the parties,” said Raha.

Besides these $20 billion investment, Hindujas would invest $1 billion this year in real estate, medicare, foundry expansion in India. The group is keen to revive the power project in Andhra Pradesh. “We have met the Andhra Chief Minister for the power project. We are committed to reviving the project,” he said.

The group is waiting for land to be alloted, he said.

Hindujas have 40 acres land in Bangalore, which is witnessing a real estate boom because of the mushrooming IT and ITeS companies.

“The Bangalore project would be the first real estate project to be taken up. We have received all the clearances for the project,” he said.

Hindujas plan to build complexes for IT and ITeS and some residential in the 40 acres.

“We are planning more investments in real estate in other cities particularly tier II,” he said without giving further details.

For medicare, the group has chalked out “big plans”. It has a tie up with Dubai World. “We plan to start a chain of hospitals. We are drawing up detailed plans,” Raha told PTI.

The group targets to open hospitals in Mumbai, Hyderabad and Bangalore and target tier-1 and tier-2 cities.

The group runs a non-profit hospital in Mumbai.

Hindujas would leverage its expertise from its non-profit hospital, which has about 400 beds, he said.

“We had asked AT Kearney to carry out a study for us. According to that study, we should have 3,000-4000 more beds,” he said.

The second hospital to be set up in Mumbai will run on commercial lines.