The appointment of an insolvency resolution professional (IRP) for Nagarjuna Oil Corporation Ltd (NOCL) by the Chennai Bench of the National Company Law Tribunal (NCLT) is expected to help the company revive its refinery project in Tamil Nadu.
NOCL’s 6-million-tonne refinery on the east coast of Tamil Nadu was supposed to be commissioned in 2012 at a cost of about Rs 3,500 crore, but cyclone Thane stalled it. Around 60 per cent of the work was completed, but it suffered damage due to the cyclone. Since then, NOCL, which is backed by Nagarjuna Oil Refinery and Tata group companies, has been looking for a strategic investor to pump in fresh equity and restart the project. While NOCL’s management were not available for comment immediately, insiders estimate the company would require Rs 14,000-15,000 crore, including debt and principal amount, to revive the project. The company would need Rs 4,000-5,000 crore of equity to raise such a debt.