State-owned Indian Oil Corp (IOC) has said that it is yet to commence work on a Rs 5,150 crore liquefied natural gas (LNG) import terminal at Ennore in Tamil Nadu. In a stock exchange filing, IOC said its Board had in October last year had approved setting up a 5 million tonne LNG project at Ennore through a joint venture company.
´The cost of the project is estimated at Rs 5150 crore. The project would be implemented through a joint venture company and not directly by Indian Oil,´ it said. IOC would hold 45 per cent stake in the project while Tamil Nadu government enterprise, TIDCO will have 5 per cent holding. Balance 50 per cent will be held by financial institutions.
´The joint venture company will be initially incorporated with a seed capital of Rs 1 lakh… of which IOC´s investment would only be Rs 45,000 at present,´ the statement said. As the project activities progress, the strategic joint venture partners would be identified and inducted as equity partners.
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