Date:27/03/2007 URL: http://www.thehindubusinessline.com/2007/03/27/stories/2007032703290200.htm

Bhatinda refinery: ONGC not against Mittal-HPCL pact

Our Bureau

New Delhi March 26 ONGC and LN Mittal Group are discussing the business plan to expand joint venture activities of ONGC Mittal Energy Ltd (OMEL).

At a recent meeting of the chiefs of the two entities, Mr L.N. Mittal and Mr R.S. Sharma, Chairman and Managing Director of ONGC, in London and again in Delhi on last Saturday, the promoters expressed absolute satisfaction at the progress made so far.

In a statement issued here on Monday, ONGC said that it had nothing against a joint venture agreement between Mittal Steel group and Hindustan Petroleum Corporation Ltd (HPCL) for setting up a refinery at Bhatinda. The company was reacting to reports that the agreement between Mittals and HPCL violates the joint venture deal, which Mittals have with ONGC.

As regards the joint venture agreement signed by ONGC and OVL with Mittals, there is no clause, which makes it binding or obligatory for Mittals to conduct business in India on exclusive basis with ONGC. However, in one of the promoters' meetings, the project was brought to ONGC's notice and since it did not evince interest, Mittals have gone ahead with their refinery project with HPCL.