Revival plans for Nagarjuna Oil TN refinery
Oil Corporation hopes to get concrete resolution with plans for revival from investors by early December. The National Company Law Tribunal-appointed Resolution Professional calling for Expressions of Interest from prospective investors and about 20 potential investors including MNCs have submitted initial expression of interest.
NOCL’s 6 million ton refinery at Cuddalore, about 200 km from Chennai, was scheduled to be commissioned in 2002 at an investment of around ` 3,500 crore. But owing to delays and cost overruns, the estimates mounted to ` 12,500-18,000 crore, and the commissioning was pushed to 2017. But a storm in December 2011 hit the project hard and it was stalled.
The Hyderabad-based Nagarjuna Oil Refinery, which is setting up the project, held a 46.78 per cent stake (77.62 crore shares) in Nagarjuna Oil Corporation. The RP said that with funds infusion, the project can be commissioned in two-three years after completing the balance work. The plant is capable of meeting E-VI norms with some additions. Statutory clearances are in place, though some of them need to be renewed.
This is a critical project for Tamil Nadu as the refinery was an anchor for the proposed PCPIR (Petroleum Chemicals and Petrochemical Investment Region). It was the largest private sector investment in the State and figured prominently in the Global Investors Meet 2015 organised by the State government. The government had also proposed an incentive package.