The GMR group is considering diversifying into oil business with a bang. It has approached the Andhra Pradesh (AP) government for much-awaited Rs 30,000 crore export oriented refinery project in the proposed petroleum, chemical, petrochemical investment region (PCPIR) between Kakinada and Visakhapatanam.
According to government sources, the GMR group is considering to bid for controlling stake (51%) in the project, however, the company officials refused to comment. Sources said that even if GMR has no exposure in the oil business, they may associate with some other oil company. ?We will vet their business strategy thoroughly before we give our consent,? a senior official told FE.
Interestingly, earlier Hindujas also have approached the government seeking stake in the Kakinada Refinery and even held discussions with ONGC. However, the state government is tilting towards GMR, informed sources said.
?It is now for the chief minister to take a final call on it in the next few days,? a highly placed source said. Official felt the delay will have its own advantages since the government had already acquired about 8,000 acres land and now it is benefiting PCPIR project.
After the exist of Subir Raha ONGC had developed subdued view on the project.
The project was originally conceived as 7.5 mtpa capacity project in 2006, which got revised twice to 15 mtpa and 20 mtpa, thus enhancing the project cost to Rs 30,000 crore. The project will be set up in the Kakinada multi-product SEZ.