The Hindu Business Line : Narmada Chematur paper upgraded

ICRA has upgraded the rating assigned to the Rs 25-crore commercial paper (CP) programme of Narmada Chematur Petrochemicals Ltd (NCPL) from `A1' to `A1+'.

Although the revised rating indicates the highest safety, the relative degree of safety regarding the timely servicing of interest and principal as per terms, however, has improved marginally since the earlier rating was assigned.

The rating upgrade, according to an ICRA statement, takes into account the comfortable liquidity position of the company as well as the improvement in its capital structure.

It also factors in the favourable demand outlook for its major products, the satisfactory production performance at both its plants and the support of its parent, the Gujarat Narmada Valley Fertilisers Company Ltd (GNFC).

The `LA+' (Structured Obligation) rating assigned to NCPL's various long-term borrowing programmes has been withdrawn as the company has prepaid the instruments and there are no outstandings against them, ICRA has said.

NCPL has an annual capacity to manufacture 20,000 tonnes of aniline and 10,000 tonnes of toluene di-isocyanate (TDI) at Narmadanagar in Gujarat.

It enjoys a locational advantage with respect to aniline since the dye industry, the main consuming sector, is concentrated in the State. NCPL, incidentally, is the only producer of TDI in the whole of South Asia.

The company prices both its products on import parity. In case of aniline, in addition to the customs duty, the domestic industry is further protected by way of anti-dumping duty.

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