Nearly 16 months after the board of Indian Oil Corporation Limited (NSEI:IOC) (IOC) had decided, in principle, to acquire up to 50% in the Mundra LNG Terminal in Kutch, the PSU refiner-cum-retailer seems to be having second thoughts. The INR 50 billion LNG terminal, set up by GSPL LNG Ltd, is a joint venture of Gujarat State Petroleum Corporation Limited (GSPC) and Adani Enterprises Limited (BSE:512599). According to sources, IOC may not participate in the project for multiple reasons, including issues over sub-concession agreements with the Gujarat Maritime Board.

Gujarat government officials neither denied nor confirmed IOC's move. Speaking to BusinessLine, Raj Gopal, Additional Chief Secretary of Gujarat's Energy & Petrochemicals Department, said: “Discussions are still on. We are trying to resolve the issue.” According to sources in IOC, it has sought more information and due diligence is still on.