Gujarat State’s FIs to pick up 5% equity in Petronet

Gujarat -owned financial institutions are to pick up 5 per cent equity in Petronet LNG project. The decision in this regard was taken in a board meeting of Gujarat Infrastructure Development Board (GIDB)

"For now, we have decided to purchase 5 per cent equity in the holding company, which works out at around Rs 45 crore. We are aolso likely to pick up equity in a subsidiary later. We will also have directors in the holding company and the subsidiary," said Mr S K Shelat, economic advisor to chief minister of Gujarat. Petronet LNG is a consortium of four major Public sector undertakings in oil sector — ONGC GAIL, IWL and IOC. Petronet has been awarded an LNG-driven port at Daliej, which expects to develop as a multi-cargo port.

The board has also decided to offer Ahmedpur-Mandvi to the private sector for developing it as a resort. To be set up at the cost of Rs 48.5 crore, the project will be offered on Build Operate Own (BOO) basis to private developers through international tenders. The project is expected to be the biggest such project in Gujarat and will be developed as a tourist village.

The government also gave in-principle approval to an industrial park at Mundra, to be developed in an area of about 3000 hectares. The spadework for the park will be carried out by Gujarat Industrial Development Corporation (GIDC) and is part of the port-driven development strategy of the state.

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Compiled from local news media