USHA MARTIN-Phased Modernisation Plan

TATA CHEMICALS Joint Venture Oil Refinery TATA CHEMICALS and Indian Oil Corporation (IOC) propose to promote a joint venture company under the name 'Tata-Indianoil Refineries' (TIR) to implement and operate an oil refinery with an annual capacity of 6 million tonnes, to be located at Karnal in Haryana. The project, estimated to cost Rs 1,232 crore at 1985 prices, is intended to be financed on the basis of a debt-equity ratio of 4:1. Accordingly, the share capital is estimated to be Rs 247 crore, of which IOC and Tata Chemicals will contribute 26 per cent each and the balance 48 per cent will be offered to the public including NRIs. The refinery will be equipped with modern hydro- cracker secondary processing and will be so planned as to lend itself in future to the production of feedstocks for petrochemicals, lubricants, etc. It is perhaps for the first time that a public sector and private sector company have joined hands to undertake such a massive project of great national importance.