ONGC yet to seek green nod for M'lore SEZ

The ministry of environment and forests has said it has not yet received any proposal seeking environmental clearance for Oil and Natural Gas Corporation's mega petrochemicals project at Mangalore.

"As and when applications for environmental clearances of projects in Mangalore are received, they will be considered as per the provisions of the Environment Impact Assessment Notification and the Coastal Regulation Zone Notification, 1991," sources in the ministry said.

A meeting was recently chaired by Principal Secretary to the Prime Minister's Office TKA Nair to review the progress on the Mangalore project.

The Prime Minister's Office had shown an interest in the development of the Rs 45,000-crore mega petro project through a time-bound action plan.

A special economic zone (SEZ) was proposed to be developed by a special purpose vehicle floated by MRPL-ONGC, Karnataka Industrial Areas Development Board, Kanara Chamber of Commerce and Industry, IL&FS and New Mangalore Port Trust (NMPT).

The zone would require 6,500 acres, of which 1,000 acres were supposed to be available with KIADB, said sources. Another 639 acres had been identified by KIADB and 140 acres might be available with NMPT.

Among the key features of the project is a petrochemicals (aromatic) complex based on naphtha from MRPL-ONGC. The detailed feasibility report of the complex has indicated that it will require an investment of Rs 13,000 crore.

It is up to the state government to acquire land and right of way, make arrangements for assured supply of water, and power till the SEZ's power plant is functional, and execute a deed of assurance with ONGC in order to ensure a protected fiscal regime for the 15-million tonne refinery.

In addition to the Karnataka government, different ministries of the central government are required to upgrade infrastructure in Mangalore to facilitate development of the mega petrochemicals project.