In a bold move, the Indian government has given the thumbs up to ONGC’s proposal to inject Rs. 18,365 Crores into ONGC Petro-additions Limited (OPaL), catapulting ONGC’s stake from 49.36% to a commanding 95.69%. This capital infusion sets the stage for a comprehensive overhaul of OPaL’s financial architecture, ensuring the petrochemical giant’s long-term viability.
As a crown jewel of India’s petrochemical industry, OPaL boasts an impressive portfolio, featuring a cutting-edge dual feed cracker and an annual production capacity of 1.5 MMTPA of polymers and 0.5 MMTPA of chemicals. With this investment, ONGC is poised to further solidify OPaL’s market dominance, currently pegged at 12%.
The government’s approval also comes with a guarantee of uninterrupted feedstock supply from ONGC’s nomination fields, with a premium of up to 20% over the prevailing APM gas price. This assured supply chain will be the linchpin of OPaL’s success, aligning with ONGC’s ambitious vision of becoming a global energy powerhouse.
With ONGC’s total investment in OPaL now totaling Rs. 22,728 Crores, the stage is set for a new era of growth and innovation at OPaL, buoyed by the government’s vote of confidence.
