B
Construction of storage tanks in progress at the Cuddalore refinery of Nagarjuna Oil Ltd (file photo).
Independent oil and commodities trader Trafigura Pte Ltd has said that it will invest up to Rs 1,250 crore ($250 million) in the Nagarjuna refinery coming up at Cuddalore in Tamil Nadu, and in storage facilities. In a statement released in Singapore, Trafigura said it will invest Rs 650 crore ($130 million) for a 24 per cent stake in the Nagarjuna Oil Corporation Ltd refinery. In addition, it will pump in a further Rs 600 crore ($120 million) to construct storage facilities and associated infrastructure at the refinery. The statement said Trafigura’s investment in the refinery was the first of its kind for the company.
“Geographically, the facility is well positioned to receive crude oil from Trafigura’s international producer partners. The investment also affords the company the ability to participate in India’s domestic market where rising incomes, higher vehicle sales and rapid urbanisation are driving the country’s position as one of the world’s fastest-growing major economies.”
The refinery, with a capacity of six million tonnes a year, can process heavy/sour grades of crude oil and will supply light and middle distillates. The Hyderabad-based Nagarjuna group holds a 51 per cent stake in the project, with Tata Petrodyne, a Tata group company, being the other major shareholder with a 30 per cent stake. The Tamil Nadu Industrial Development Corporation, a Tamil Nadu Government industrial promotion undertaking, is the project’s co-promoter.
The project, which involves relocating the plant and machinery from a refinery in Germany, has been delayed and was due to be commissioned by March. However, its commissioning has been delayed by the cyclone that hit the Tamil Nadu coast in December 2011. The Nagarjuna refinery, being set up at an investment of Rs 10,000 crore, will be the anchor unit for the Centre’s Petroleum, Chemicals and Petrochemicals Investment Region in the area. This will bring in investment of up to Rs 13,000 crore in associated facilities and infrastructure.
0 கருத்துகள்:
கருத்துரையிடுக