The Bangalore-based GMR group is likely to sign two MoUs with the Andhra Pradesh government during the Partnership Summit, which begins here on Thursday . While one will be for a refinery project proposed in Kakinada, the other will be for the development of a Special Economic Zone (SEZ) project. These are expected to be signed during the summit.
The size of the investment committed for the refinery project by the company is around Rs 25,000 crore, according to state government officials. However a GMR official, when contacted, refused to comment on these details.
The proposal to set up a refinery project by the GMR group first came up four years ago when the company had replaced public sector ONGC by acquiring a majority stake in an 8,000-acre industrial park project (KSEZ) meant for refinery and downstream operations near the port town of Kakinada.
The company last year maintained it was scouting for partners for the refinery project.
GMR group chairman Grandhi Mallikarjuna Rao is likely to sign the MoUs on behalf of the company, according to officials.
Coinciding with GMR's revised interest in the refinery sector two more companies -- one from Kuwait and other from Abu Dhabi -- are also expected to sign MoUs with the state government for setting up two refinery projects during the event.
“The combined investment for the three refinery projects would be over Rs 60,000 crore,” said a senior industries department official here on Tuesday.
The officials have now ticked off another refinery project, which was supposed to be relocated from the US by a Hyderabad-based company, stating there were remote chances for it to materialise. “However, the two overseas companies from West Asia have a sound financial background and we are hopeful that they would take the MoUs to their logical end,” said the official.
The state government recently said about 140 proposals with a total investment of over Rs 3.14 lakh crore had been lined up for signing MoUs at the Partnership Summit being co-hosted by the commerce ministry, AP government and the Confederation of Indian Industry (CII).
