Oil and Natural Gas Corp's (ONGC) Kakinada project continues to attract investors despite questions about its viability.
The GMR group is the latest and is reported to have formally expressed interest in taking a stake in the refinery and petrochemical project. The board of Kakinada Refinery and Petrochemicals (KRPL) is due to meet today to decide on the stake sale.
ONGC has raised the capacity of the proposed refinery from 7.5m tonnes/year to 15m tonnes/year to improve its economics. A feasibility study is still on but the company has already asked the Andhra Pradesh government for fiscal incentives (exemption of sales tax, free power and water supply during construction and road/rail connectivity) to make the project financially viable.