Chennai, July 2 (UNI) Nagarjuna Oil Corporation Ltd, a subsidiary of Nagarjuna Fertilisers and Chemicals Ltd, is setting up a six MMTPA (1.25 lakh barrel per day) Oil Refinery at Cuddalore in Tamil Nadu with an investment of Rs 4,790 crore.
Tamil Nadu Chief Minister M Karunanidhi today laid the foundation stone for the project, which is expected to generate direct employment opportunities for more than 5,000 people.
Talking to newspersons here, Nagarjuna Oil Corporation Managing Director S Rammohan claimed the project is highly competitive in terms of capital cost as parts of the refinery are being set up with process units dismantled from a plant at Woerth in Germany.
''The Sales Tax-based structured assistance from the Tamil Nadu Government also improves the viability of the project,'' he added.
The refinery has already firmed up crude supply and export off-take arrangement with British Petroleum, he said, adding. ''The project will be implemented in 36 months and slated for ommissioning by mid-2011. ''After commissioning, we would reach the sales target of Rs 20,000 crore annually''.
''The facility is expected to produce 15 MMPTA by 2013-14 after expansion, he said.
''The refinery can process cheaper heavy sour crude and capitalise on the differential between light/heavy and sweet/sour crude oil prices,'' he said.
Mr Rammohan claimed that the commissioning of refinery will not only improve the availability of petroleum products in the state but also provide feed stock for various petrochemical units which are expected to come up in the region.
UNI SNR GM SG VC1907