Agency report from New Delhi - Saturday, 10-30 pm

Mangalore, Feb 25: State-owned exploration major Oil and Natural Gas Corporation has set up a new company - Mangalore SEZ Ltd - to develop the Mangalore Special Economic Zone with an investment of Rs.350 billion.

The new company, a special purpose vehicle, was incorporated Friday at Bangalore, the company said in a statement Saturday.

"ONGC is the anchor co-promoter of this SEZ. The other equity holders are the Karnataka government, Kanara Chamber of Commerce and Industry (KCCI) and Infrastructure Leasing and Financial Services Ltd. (IL&FS)," the statement said.

ONGC will hold 26 percent equity in the company while the Karnataka government, through the Karnataka Industrial Area Development Board (KIADB), will hold 23 percent and the balance 51 percent will be jointly owned by KCCI and IL&FS.

The New Mangalore Port Trust (NMPT) has shown interest in joining the project but is awaiting approval from the shipping, road and transport ministry.

If NMPT joins, the combined equity of KIADB and NMPT will be 23 percent.

"The total investment envisaged for development of various projects by ONGC and its subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) in the SEZ is around Rs.350 billion," the statement said.

A petrochemical complex, a liquefied natural gas (LNG) regasification terminal and a methane-propane extraction plant using regasified LNG are to be set up in the SEZ.

Of the 2,450 acres of land proposed for the SEZ, about 840 acres have been so far acquired by KIADB.