ONGC chief D K Sarraf says no plans to list overseas arm, JVs

Reversing the plans of the previous management, the new brass at the oil and gas producer ONGC has ruled out taking any of its five JVs, especially its power venture in Tripura and petchem venture OPAL, and also its sole subsidiary ONGC Videsh, public or exiting them.

"We have no plans to exit any of our joint ventures. Also, are we not thinking about taking them public through IPOs," ONGC Chairman & Managing Director D K Sarraf told a group of journalists here over the weekend.

He also ruled out listing sole subsidiary OVL, which handles the state-run exploration giant's overseas operations. "Definitely not. We have no plan to list ONGC Videsh".
The oil and gas behemoth, in which the government holds 69 per cent stake and is on the block for a five per cent divestment soon, has five JVs and one subsidiary (ONGC Videsh).

The five joint ventures are ONGC Petro Additions (OPAL), ONGC Mangalore Petrochemicals (OMPL), ONGC Tripura Power Company (OPCL), Dahej SEZ (DSL) and Mangalore Special Economic Zone (MSEZ). Of these, the past management was keen on listing OTPCL and OPAL.

OPAL, incorporated in 2006, is a joint venture between ONGC, GAIL and GSPC (Gujarat State Petroleum Corp). It is currently setting up a a grass root mega petrochemical project at Dahej in Gujarat.

OMPL is promoted by ONGC and Mangalore Refinery and Petrochemicals (MRPL) and was set up in December 2006. It has an aromatic complex coming up at 442 acres in the Mangalore Special Economic Zone at an estimated cost of Rs 5,750 crore.

OTPC is a joint venture of ONGC, IL&FS Energy Development Company and Tripura government. It is setting up a 727 MW combined cycle gas power plant in Tripura to monetise gas, which had been lying idle for want of adequate market in the region.
Mangalore Special Economic Zone was incorporated in February 2006 with participation of ONGC, IL&FS, Karnataka Chamber of Commerce & Industries and Karnataka Industrial Area Development Board with an equity structure of 26 per cent, 50 per cent, 23 per cent and 1 per cent, respectively.

Dahej SEZ is a joint venture between Gujarat Industrial Development Corporation (GIDC) and ONGC, and was set up in September 2004 with an equity holding of 26 per cent and 23 per cent, respectively with the rest being set aside for strategic investors.