Torrent Power [Get Quote] plans to pick up equity in Dahej special economic zone being set up jointly by ONGC [Get Quote] and GIDC. The Torrent Group company is aiming at over 20 per cent equity in the Dahej SEZ which also has a Rs 13,500 crore (Rs 135 billion) integrated petrochemical complex coming up in south Gujarat.

However, sources close to the oil and gas major suggested that ONGC is not willing to part with a significant stake to a single company as it is negotiating equity participation with a number of companies including Japanese majors Mitsui and Mitsubishi.

When contacted by Business Standard Torrent Group officials refused to comment on the company�s co-developer�s role in the Dahej SEZ.

According to sources in the state government, Torrent Power aims to set up 500 Mw capacity gas-based power plant at Dahej SEZ which will take care of part of the power requirements of the units coming up in Dahej SEZ.

However, the future of the proposed power project of Torrent group would largely depend on ONGC's plans to have its own power project for the Dahej SEZ.

Sources said that the oil and gas major is also planning to have its own power project which will be set up as an ONGC subsidiary for Dahej SEZ. If ONGC freezes its plans to have its own power project, then as co developer Torrent Power will be left with the distribution job for the surplus power.

The proposed subsidiary of ONGC plans to generate 1400 Mw of gas-based power for SEZ units including its own petrochemical complex ONGC petro-additions (OPaL).

Approximately, 500 Mw of power from the proposed ONGC power project is expected to go to its petrochemical complex whereas remaining 900 Mw of power would be distributed among the other units in Dahej SEZ as per their requirement.

The Dahej SEZ has 26 per cent stake of ONGC and 5 per cent stake of Gujarat State Petroleum Corporation. ONGC is negotiating a stake sale in its Dahej SEZ with a number of other potential investors including Japanese companies and some of the leading Indian companies.

Approximately 30 per cent to 35 per cent of the project is expected to go to banks and financial institutions whereas around another 35 per cent is expected to be shared between all those companies willing to take a stake in the Dahej SEZ as co-developer.

India's great rush for SEZs