GSPC won't fully exit Rs 5000 cr Mundra LNG project

State-owned Gujarat State Petroleum Corporation (GSPC) has clarified that it is not fully exiting the Rs 5,000 crore Mundra LNG terminal project in which Indian Oil Corp's (IOC) is eyeing up to 50% stake.

At present, GSPC holds 75% stake in the 5-million-tonne-per-annum project, while Adani Group holds 25%. GSPC had originally planned to sell the remaining 25% stake to a strategic partner and had even shortlisted some companies for the same but the plan could not go through for 3-4 years.

However, IOC Board on Friday approved the proposal to acquire up to 50% stake in the project for an estimated Rs 750 crore. GSPC officials said that IOC is being roped in as a strategic partner.

Of late, there have been speculations that GSPC was looking to sell its entire 75% stake and exit the Mundra LNG project and the latest development has further fuelled such speculations.

State's chief secretary and GSPC chairman J N Singh, however, told DNA Money that while a final decision regarding GSPC's shareholding is still to be taken, "we are not going out for sure".

Asked if GSPC would remain a minority partner in the project by retaining just 25% stake, Singh said that it could be 25% or more.

"The IOC Board has approved acquisition of up to 50% stake in the project. It is their offer, we are still to take a call," Singh said.

Another senior official also confirmed that the quantum of stake sale in the Mundra LNG project has not been decided yet, but a decision would be taken soon.

"This decision has to be taken by the political leadership. But, it is equally true that GSPC does not have many financial resources," he said.

According to officials, work on the LNG terminal is nearing completion, and it is expected to be commissioned by the end of this year. The project comprises receiving, storage and regasification facilities for liquefied natural gas (LNG). The project's initial capacity of 5 mtpa can be expanded to 10 mtpa.

LNG TERMINAL PIE

• GSPC holds 75% stake in the terminal, while Adani Group holds 25%
   
• GSPC had planned to sell the rest 25% stake
   
• It had even shortlisted some companies for it