Financial Daily from THE HINDU group of publications
Thursday, Mar 07, 2002

Port Info

Group Sites

Corporate - Announcements

Nocil Thane plant to resume production

Our Bureau

MUMBAI, March 6

AFTER a three-month shut-down, National Organic Chemicals Industries (Nocil) has decided to resume production at its Thane plant.

"The plant will re-start operations in a day or two. But it may take a week or so to get back to normal production,'' a senior company official said.

The petrochemical plant of Nocil, shut down in November for annual maintenance, could not resume production, as its raw material supplier stopped delivery of naphtha due to non-payment of arrears.

According to sources, Nocil owed large sum as dues to Bharat Petroleum Corporation on account of purchase of naphtha, the key raw material for its plant. However, the public sector refinery has agreed to supply the material on cash payment.

A BPCL official confirmed that it had agreed to supply naphtha to the company on cash payment basis. "We have started supply to Nocil two days ago,'' the official said.

The plan to revive and modernise the Mafatlal-controlled petrochemical company suffered a setback with the Shell Group backing out of an MoU on equity investment in Nocil last year. The company's effort to find a new partner is yet to materialise.

A senior company official, however, said negotiations with a new party were still in progress.

At one stage, Nocil tried to get BPCL and IOC to pick up a part of the Mafatlal stake in the company, but both had turned down the proposal.

The low price of naphtha may help the company to pull on for the time being.

But without the proposed modernisation, it would be difficult for the company to survive in the long run, said a petrochemical analyst.

Send this article to Friends by E-Mail

Stories in this Section
Siemens gung-ho; to invest $500 million

Nocil Thane plant to resume production
Reliance hikes polymer prices
Bells Controls hamstrung by SEBI delay on open offer
BDA suit against National Industrial
`Poaching' fears
BSNL to be split into four business units
Wockhardt sells IV fluid business to Baxter India
Videocon stake in Matsushita set to slide
24/7 to expand India operations
Toyota to set up export unit in Karnataka
Default calls `arrangement' stayed again
DCA doubles employee salary disclosure cut-off
DCA settles 1,348 investor complaints
Bharti Telesonic, Escotel group sign pact
Crisil ties up with Getit
AV Birla, Reliance groups keen on Singapore ventures
`Shaw Wallace can beat MNCs at their own game'
`Meagre exports insulate Indian steel from US move'
Despite hike in administered price... Greater Calcutta Gas still gasping for breath
Hind Motors hopes to sell 15,000 Ambys this fiscal
Raunaq Singh no longer MD of Apollo Tyres
SEBI tells SEs to act tough on dividends
Promoters to save Rs 196 cr in taxes
Finance Ministry move bursts dividend bubble
Some cos willing to cancel interim dividend

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line