Nagarjuna Oil Corporation Ltd whose 6 million tpa
Cuddalore refinery project has been dragging since 2002 is likely to be
rekindled.
It is learnt that the equity structure of the
project would be finalized by June 2005 leading to the project's financial
closure in September 2005.
Construction activity on the project having
gestation period of 24-30 months, is expected to start in the last quarter of
2005.
Broad Current Status:
The Rs.3,480 crore project will have equity
component of Rs.1,160 crore. Oman Oil Company has committed to pick up 26 per
cent equity stake. By current thinking, the equity pattern would be:
| Company |
Stake (%) |
| Nagarjuna Group (Lead
promoter) |
51 |
| Oman Oil Co |
26 |
| Tamil Nadu Indl. Devp. Corpn. |
7 |
| Indian Oiltanking |
11 |
| Krupp Uhde |
7 |
| Total |
100 |
Nagarjuna Oil Corporation has reportedly tied up
for marketing with IBP, Bharat Petroleum Corporation and ONGC, through MRPL.
Debt for the project will come from KfW, a German development bank, and a host
of Indian financial institutions and banks led by IDBI.
As of 31 March 2005, the project had witnessed
expenditure of Rs.930 crore on equipment, technical fees, engineering and
interest during construction. A part of the equipment from a Mobil plant in
Germany had arrived at Cuddalore.