Mumbai Dec 05, 2006
India Infoline News Service
The group is reportedly close to acquiring a 26% stake in Nagarjuna Oil Corp`s upcoming oil refinery project at Cuddalore for about Rs4bn
The Tata Group is reportedly close to acquiring a 26% stake in the Nagarjuna Group’s upcoming oil refinery project at Cuddalore in Tamil Nadu for about Rs4bn. The 6-mn-tones-a-year refinery is estimated to cost Rs4bn. Of this, the equity portion is Rs15bn.
According to a financial daily, though officials of both the groups have declined to comment about the development, a formal announcement in this regard is expected soon.
The debt portion of Rs30bn is also likely to be tied up shortly, says the newspaper. The Nagarjuna group will hold a 51% stake in Nagarjuna Oil Corp. It plans to sell a total of 49% stake in the project. Nagarjuna Fertilizers & Chemicals Ltd. has pumped in Rs6bn in the refinery.
The refinery was to have gone on stream from 2002, but has not been able to do so due to lack of adequate funds, says the newspaper. It is now expected to start commercial production 33 months from the date of financial closure, it adds.
Meanwhile, shares of Nagarjuna Fertilizers gained 1.3% on Monday after having lost 3.7% in the last one month.