New Delhi: State-owned Oil and Natural Gas Corporation (ONGC) has announced an increase in its stake in Mangalore SEZ Ltd (MSEZ) from 26% to 49%. The company purchased 1,15,20,000 equity shares from Infrastructure Leasing & Financial Services (IL&FS) at a cost of Rs 40.32 crore. This acquisition was approved by the ONGC board of directors and is in accordance with the Share Holders’ Agreement.

ONGC stated that this increased stake in MSEZ would benefit both ONGC and its subsidiary, Mangalore Refinery and Petrochemicals Ltd (MRPL). IL&FS had offered its equity stake in MSEZ to ONGC as a Right to First Refusal.

MSEZ is a special purpose vehicle (SPV) that was established in 2006 as a joint venture of ONGC, IL&FS, Karnataka Industrial Area Development Board (KIADB), MRPL, and Kanara Chamber of Commerce & Industry (KCCI). Before the stake sale, IL&FS held 50% of the shares, while KIADB held 23%, MRPL held 0.96%, and KCCI held 0.04%.

MSEZ is a multi-product SEZ that primarily leases land to industries and provides utility services such as water supply, power supply, lease rental, zone maintenance, CETP, marine outfall, and pipeline corridor. In the fiscal year 2021-22, the company had a turnover of Rs 198.99 crore.

ALSO READ: PM lauds MUDRA scheme on its 8th anniv