Oil Natural Gas Corporation (ONGC) is expected to carry out a due diligence in Southern Petrochemical Industries Corporation (SPIC) shortly. ONGC is likely to pick up stake in SPIC Petrochemicals Ltd. SPIC would be a minority partner in the venture.
The state-owned Oil Natural Gas Corporation has apparently negotiated with SPIC on the project's revival. A complete revival of the petrochemical project would require an investment of upto Rs 1,300 crore. Rs 200-300 crore would be needed to revive the operation, while Rs 1,000 crore would go towards manufacture of the full range of products.
SPIC floated SPIC Petrochemicals in 1994-95 to handle its petrochemical interests. The company was to manufacture purified terepthalic acid and polyster filament yarn. A subsequent litigation with Chennai Petroelum saw work on SPIC Petro being suspended, having an adverse impact on SPIC's performance as more than Rs 550 crore was invested in the project.
30-Sep-05 
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