Mumbai, Feb. 11 :    Mumbai, Feb. 11:  Indian Oil Corporation (IOC) is considering the acquisition of a stake in the 6 million tonne refinery being set up by the Nagarjuna group. The refinery is being implemented by Nagarjuna Oil Corporation (NOCL), with a capital outlay of Rs 3,500 crore. Senior IOC officials, while admitting the company has received a proposal from the Hyderabad-based group, said the company is yet to take a decision on the issue. 'We have received a proposal from them. However, no decision has been taken,' an official said. As per the initial equity pattern being worked out by the company, while the Nagarjuna group will hold 51 per cent, 11 per cent will be held by TIDCO and the balance is likely to taken up by strategic and financial investors (who are likely to hold a 26 per cent stake) and the public. Confirming the development, senior institutional sources said while the Tamilnadu Industrial Development Corporation (TIDCO) is an equity partner in the project, foreign oil majors too have evinced interest in acquiring a stake. Among the foreign majors, Mobil Corporation and Catex are believed to be potential contenders, apart from Kuwait Petroleum Corporation. Sources said a major advantage of roping in the IOC as a partner in the project would be its strong distribution network in the country. However, sceptics aver that IOC is unlikely to pick up an equity stake in the venture promoted by the Nagarjuna group as it is on the verge of taking over the Chennai Petroleum Corporation which has a stand-alone refining capacity of 6 million tonne. Further, IOC also plans to set up a 9 million tonne Nagapattinam refinery, originally proposed as a joint venture with Chennai Petroleum. The Nagarjuna refinery project involves a relocation of Mobil's refinery from Woerth, Germany, which includes the main refinery, fluidized catalystic cracker (FCC), effluent treatment plants, captive power plants, marine terminal facilities and storage for handling of crude and product exports. Financial institutions and banks led by the Industrial Development Bank of India (IDBI), ICICI and State Bank of India (SBI) have already sanctioned around Rs 1,000 crore for the project. The project, slated for commissioning in the last quarter of 2001 in Cuddalore, will be the first fully-owned private sector refinery in south India. The refinery, according to reports, will have the flexibility to process different types of crudes and produce multiple grade products of international specifications. Its major products include liquefied petroleum gas (LPG), motor gasoline (petrol), kerosene, diesel, fuel oil and bitumen.