Calcutta, Nov. 10: IBP Ltd is planning to enter into an agreement with Nagarjuna Oil Company for selling products that would be produced at Nagarjuna’s proposed six-million tonne refinery. The IBP board will shortly take up the matter for a thorough discussion, a senior executive said.
Nagarjuna Oil is setting up the refinery in Tamil Nadu for which Mobil’s plant from Germany is likely to be brought. But it is not yet known whether the company has been able to attain financial closures.
The move will help the Indian Oil subsidiary to have a strong presence in the southern region. The city-based company has a very strong network in the northern and eastern regions of the country.
IBP managing director Arun Jyoti said the sale of the balance 26 per cent government stake in the company would be completed by March 2004.