Re­vival plans for Na­gar­juna Oil TN re­fin­ery

Chemical Industry Digest - - News & Views -

Na­gar­juna

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.

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