NEW DELHI, Aug 19 - In a curious turn of event, officiating Chairman-cum-Managing-Director of Oil India Limited (OIL) UP Singh has denied involvement of the oil major in the equity participation of the new ammonia-urea complex at Namrup, throwing the fate of the proposed brownfield project into uncertainty.
Replying to questions at a press briefing, Singh pleaded ignorance about the involvement of OIL in the proposed brownfield project that was cleared by the Union Cabinet on May 21. �I am not aware of OIL�s involvement with the fertilizer plan. Normally we do not venture into projects that is not within the oil sector,� Singh said.
He then referred to Palatana power project of Tripura, which is a joint venture project with ONGC. The involvement of the oil company was because of the huge gas reserve, he said.
The denial about OIL�s involvement with the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) may lead to fresh crisis for the project. The OIL was to pick up 26 per cent stake in the joint venture.
As reported, the Union Cabinet in May sanctioned setting up of a new ammonia-urea complex at Namrup on public-private partnership (PPP) basis. Both the OIL and Government of Assam have expressed willingness for having equity of 26 per cent and 11 per cent respectively in the project, official sources had then said.
The Cabinet had given its approval for setting up a new ammonia-urea complex of 8.64 lakh metric tonne annual capacity with an estimated investment of Rs 4,500 crore at Namrup on public-private partnership (PPP) route by a joint venture (JV).
In the proposed JV, the BVFCL and Government of Assam shall have 11 per cent equity each, while the Oil India Limited (OIL) will have 26 per cent equity holding, and the balance 52 per cent will be held by private-public sector entities, which would be inducted through a competitive bidding process, official sources announced after the Cabinet meeting.