The Nagarjuna Oil Corporation Limited’s (NOCL) 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 Fertilizers 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).
