The board of directors of ONGC, which met here, approved the revised configuration of the Dahej Petrochemicals Project being implemented by the company's subsidiary ONGC Petro-additions Ltd (OPAL). ONGC has management control with 26 per cent stake in OPAL.

The project was initially configured with a styrene butadiene rubber (SBR) unit to produce rubber, and a dedicated HDPE (high-density polyethylene) unit, which have now been removed in view of current market demand-supply dynamics, a company press release said.

“The capex has come down from Rs 13,540 crore to Rs 12,440 crore, with ONGC’s equity contribution at Rs 970 crore. The internal rate of return of the project works out to be 15.4 per cent. The reconfigured project is expected to be completed by February 2012,” it said.