ONGC to sell stake in Mangalore petchem project to MRPL.

State-owned Oil and Natural Gas Corp (ONGC) will sell its 46 per cent stake in a $1-billion petrochem project in Karnataka to its subsidiary Mangalore Refinery and Petrochemicals Ltd. (MRPL).

'ONGC-Mangalore Petrochemicals Ltd. (OMPL) has lot of synergies with MRPL and so it makes better economic and business sense that this project be merged with MRPL,' a top source said.

ONGC holds 46 per cent stake in OMPL which is building a Rs. 6,400-crore Aromatic Complex in Mangalore Special Economic Zone. MRPL has 3 per cent stake while the balance 51 per cent equity is yet to be allocated.

The Aromatic Complex, being set up on 442 acres of land acquired in Mangalore Special Economic Zone, is totally integrated with the adjacent MRPL refinery.

Indian Express