Hyderabad, Dec. 2
Nagarjuna Oil Corporation Ltd has completed the financial closure for the Rs 5,000-crore refinery coming up in Cuddalore, Tamil Nadu.
“The debt portion of the investment in Rs 3,500 crore and the remaining is equity.
The commercial operations are likely to begin from December 2011,” Mr K.S. Raju, Chairman of the Hyderabad-based Nagarujuna Group told newspersons here on Wednesday.
Nagarjuna Fertilisers has 51 per cent stake in the six-million-tonnes-a-year refinery, followed by the Tata Sons with 31 per cent, he added. The remaining stake is with Cuddalore Port Development Company Pvt Ltd, Tamil Nadu Industrial Development Corporation and Uhde, Germany.
As part of its diversification plan, Nagarjuna Fertilisers would also be setting up a manufacturing unit (chemical-based) to make silicon components to be used in solar power generation in Germany.
“We are working out the details of the proposed project which may need an investment of 25 million euro. It might take another 18-24 months to be ready,” Mr Raju said.
On the performance of Nagarjuna Fertilisers which had seen a dip in sales in the September quarter with a marginal decrease in net profit at Rs 8 crore, Mr Raju said the current fertiliser policy was not conducive for increasing the production.
“Despite this, we have expanded the capacity of urea production from 1.3 million tonnes to 1.5 million tonnes. If Govt announces decontrolling in the expected fertilizer policy, we can cater to the export market,” he added.