The Hindu Business Line : Nagarjuna Oil refinery in TN to bring in investments

Chennai, June 6 The Nagarjuna Oil Corporation’s Rs 5,000-crore refinery in Cuddalore will catalyse investments in the petrochemical sector in the area, which is to be promoted as a Petroleum, Chemicals and Petrochemical Investment Region (PCPIR).

Work on the Nagarjuna Oil Corporation refinery is set to start shortly with the Tamil Nadu Chief Minister, Mr M. Karunanidhi, to lay the foundation stone for the project this month. The 6 million tonnes a year refinery would be the anchor tenant that would provide feedstock for more units to set up petrochemical based industries in the area.

The refinery is expected to go on stream in 33 months after construction work starts. The Rs 4,790-crore project with an equity investment of Rs 1,372 crore is promoted by the Hyderabad-based Nagarjuna Group.

The Nagarjuna Fertilisers holds a 51 per cent stake in the equity and Tata Sons 30 per cent. Other investors include Cuddalore Port Development Company Pvt Ltd holding 10 per cent, the Tamil Nadu Industrial Development Corporation 5 per cent and Uhde, Germany, the balance.

With the Nagarjuna refinery as the anchor tenant, the Tamil Nadu Government has proposed to the Centre to form a PCPIR over 250 sq km, covering Cuddalore and Nagapattinam, according to Mr S. Ramasundaram, Chairman and Managing Director, Tamil Nadu Industrial Development Corporation (TIDCO).

TIDCO, he said, was talking to Chennai Petroleum Corporation to set up a facility in Nagapattinam to act as the anchor tenant in the PCPIR in that region.

GAIL interested

GAIL, with which Tidco has signed a gas cooperation agreement, has evinced interest in investing in the PCPIR.

The Centre has a policy to promote investments in petrochemical sector through formation of PCPIRs. These are specifically delineated areas for setting up manufacturing facilities for domestic and export production, associated services and infrastructure. The type of investments could cover Greenfield refineries, chemicals and plastic products.

In Tamil Nadu, the 250 sq km PCPIR would cover about 70 sq km in Cuddalore, 140 sq km in Nagapattinam and a 40 sq km corridor linking the two. The investment potential is estimated at about Rs 1 lakh crore with the State Government facilitating over Rs 6,000 crore investments in infrastructure in the area.

More Stories on : New Projects | Petrochemicals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page