ONGC may buy out GAIL in OPaL
ONGC’s petrochemical complex in Dahej. People privy of the developement said GAIL is not inclined to make any additional equity contribution and has decided to cap its investment in the project at Rs996.28 crore.
New Delhi: State-owned Oil and Natural Gas Corp. (ONGC) may buy out gas utility GAIL India Ltd in its Dahej mega petrochemical project in Gujarat to take full control of the recently commissioned plant.
GAIL had in 2008 picked up 19% stake in ONGC Petro-additions Ltd (OPaL), which was then building the mega petrochemical complex at Dahej in Gujarat.
But the project, which started in 2006, faced major cost and time overruns, which forced GAIL to restrict its equity contribution to the original Rs996.28 crore.
Credit: livemint.com