Oil and Natural Gas Corporation (ONGC) has agreed to acquire an additional stake of 23% in Mangalore SEZ (MSEZ) for INR 40.32 crores from its joint venture (JV) partner IL&FS.

Mangalore SEZ is a special purpose vehicle founded in 2006. ONGC, currently holds a 26% stake and is partnered by IL&FS (50%), Karnataka Industrial Area Development Board (KIADB) (23%), Mangalore Refinery and Petrochemicals (0.96%), and Kanara Chamber of Commerce & Industry (0.04%) in the joint venture.

Following the closing of the deal, which is subject to approval from the National Company Law Appellate Tribunal (NCLAT), ONGC will increase its stake in the special economic zone (SEZ) to 49%.

Mangalore SEZ leases land to industries and provides utility services like water supply, lease rental, power supply, common effluent treatment plant (CETP), zone maintenance, pipeline corridor, and marine outfall.

The zone spans 1,607 acres and has been operational since 2014 with nearly 85% area leased out. It has 10 operational units that include MRPL (aromatic complex), Syngene, JBF Petro, ISPRL, Catsynth specialty chemicals and other food processing units.

ONGC stated: “MSEZ has emerged as one of the most vibrant operational multi-products SEZs in India. It is one of India’s successful SEZs with investments exceeding USD 2 billion so far and exports of over USD 3.2 billion worth of goods from its units.”

  India, Karnataka, Mangalore, Mangalore SEZ, Oil and Natural Gas Corporation, ONGC