ONGC to invest Rs.40, 000 crore in AP

The ONGC is keen to invest Rs.40, 000 crore on the oil and gas exploration in the Krishna-Godavari Basin during next four years period. Its CEO and Managing Director DK Saraf meets the Chief Minister Chandrababu Naidu today and said that his company aims to extract 25 million standard cubic meters gas per day from the KG Basin by 2018 and also oil from 2019.

He said that his company is keen to develop infrastructure for gas based power industries in the surrounding districts. He said that his company is also keen to become partner in the proposed Petroleum University, Skill development programs in the state. He said that ONGC would like to set up a deep-water skill development center at Kakinada with JNTU cooperation.

If so, this would be the first highest investment that the AP state is receiving after bifurcation. Although, there are gas based power plants in the state, many of them are limping due to lack of sufficient gas supply. So, if this project is materialized then the gas based power plants also start producing power and it will enhance the power situation of the state.