Nagarjuna Oil’s Cuddalore project goes under liquidation
Four bids rejected
Nagarjuna Oil Corporation’s oil refinery project at Cuddalore in Tamil Nadu has gone under liquidation as the National Company Law Tribunal’s Chennai bench was unable to find a successful bidder. BPCL, Citax Ventures, Gulf PetroChem and Haldia Petrochemicals had bid for the project. The bids were lower than the Rs.14.5 billion set as liquidation valuation and were therefore rejected. The project was to set up a 6 mtpa refinery. Nagarjuna’s books sport a debt of Rs.80 billion and unsecured debt of Rs.8 billion. The Tamil Nadu government had recommended that the project be the anchor client for the Petroleum, Chemicals & Petrochemicals Investment Region. The Centre had accepted this demand. Besides the Nagarjuna group, the project is backed by the Tatas and Trafigura.