IOC Shelves Paradip Petrochemicals Complex; ONGC Withdraws from Kakinada Refinery Project

BANGALORE, INDIA--July 3, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--Indian Oil Corporation Limited (BOM:530965) (New Delhi) has shelved its plans of building a petrochemicals complex in Paradip in the eastern state of Orissa because of a 73% escalation in project costs over the past few years. Oil & Natural Gas Corporation Limited (BOM:500312) (New Delhi) has exited from the proposed $6.25 billion integrated refinery and petroleum complex project at Kakinada in the state of Andhra Pradesh, providing the opportunity for infrastructure and power major GMR Infrastructure Limited (BOM:532754) (Bangalore, Karnataka) to pick up a 51% stake in the refinery.