ONGC Petro additions (OPaL) has “turn into our subsidiary, and we’ve been mandated to dilute our stake in it and produce it again to a JV construction via a worldwide tender”, mentioned Arunangshu Sarkar, director, technique & company affairs at ONGC, on the sidelines of the continued India Vitality Week 2026. “We’re in search of companions. We hope to come back out with a worldwide expression of curiosity (EoI).”
Sarkar, nonetheless, didn’t specify the quantum of shares the state-run vitality main would offload within the proposed personal placement.
The proposed share sale is a part of the federal government’s requirement to dump stakes within the firm to monetize property. Whereas ONGC owns 95.69% of OPaL, GAIL India Ltd holds round 4% stake, and Gujarat State Petroleum Corp. owns the remaining.
In August 2024, the Union authorities accredited the infusion of further fairness capital as much as ₹10,501 crore in OPaL, the conversion of back-stopped compulsorily convertible debentures (CCDs) amounting to ₹7,778 crore, and the steadiness fee of ₹86 crore with respect to share warrants, totalling to ₹18,365 crore. The funding was accredited to ease the corporate’s monetary challenges and enhance operations, in keeping with the mum or dad.
ONGC’s annual report for FY25 mentioned: “Recognizing its long-term potential, your organization took decisive steps to deal with OPaL’s monetary challenges via a ₹18,365 crore capital restructuring and exit from SEZ space.” To make sure feedstock stability and scale back reliance on risky LNG markets, Centre has additionally accredited allocation of as much as 3.2 million commonplace cubic meters (MMSCM) per day of gasoline from new wells, mentioned the annual report.
In FY25, OPaL offered 1,785 kilo tonnes of petrochemical merchandise, up from 1,769 kilo tonnes within the earlier fiscal, and its income from operations stood at ₹14,804 crore, up from ₹14,307 crore in FY24.
OPaL, integrated in 2006, is a petrochemical greenfield venture established within the Dahej Particular Financial Zone (SEZ). OPaL exited SEZ in March 2025.
One other ONGC subsidiary, Mangalore Refinery and Petrochemicals Ltd (MRPL), additionally hit a report throughput of 18.04 million tonnes in FY25, and is working at 120% capability, in keeping with the annual report.
“Collectively, these downstream entities not solely improve ONGC’s vertical integration but in addition present a monetary hedge in opposition to upstream volatility, contributing to sustained group-level stability. As the worldwide vitality market continues to evolve, the chemical substances and petrochemicals sector emerges as a pivotal pressure, poised to drive substantial demand throughout the oil business over the subsequent decade and past,” it mentioned.
Because the demand for merchandise like petrol and diesel is anticipated to weaken globally, the Centre goals to develop India as a petrochemical hub for world consumption of those alternate merchandise utilized in making plastics, artificial fibres, fertilizers, paints, solvents, cosmetics, and prescribed drugs, amongst others.
A CareEdge Scores report in December mentioned that India’s home petrochemical sector is anticipated to report a sturdy 6-7% annual progress within the medium time period, supported by continued financial enlargement and regular demand from downstream industries.
An S&P International report in October had mentioned that amid slowing shopper demand, uncertainty over tariffs, tighter margins and over-capacity, world petrochemical producers are betting on India as a key demand driver.
It famous that although India’s urge for food for petrochemicals stays the strongest in Asia, it has not resulted in good tidings for home petrochemical producers. Chemical producers in India are diversifying into specialty chemical substances in addition to upstream and downstream integration to compete with cheaper imports and keep a powerful maintain within the home market, it mentioned.
(Rituraj Baruah is in Panaji on the invitation of the Union ministry of petroleum and pure gasoline)