The Exchange had sought clarification from the company with respect to news article appearing in Business Standard on January 5, 2015 titled "IOC to form JV for Rs. 5,150-crore LNG terminal project in TN within a month"<BR><BR>The company replied stating " We would like to clarify as under:<BR><BR>1) The Board of IndianOil at its meeting held in October 2014 had accorded approval for 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 IndianOil. The equity participation in the JV company is proposed as under:-<BR>- IndianOil : 45%<BR>- TIDCO : 5%<BR>(A Tamil Nadu State Govt. Enterprise)<BR>- Balance 50% by financial institutions.<BR><BR>2) The JVC will be initially incorporated with a Seed Capital of Rs. 1 lacs by aforesaid JV partners out of which IndianOil's investment would only be Rs. 45,000/- at present.<BR><BR>3) As the project activities progress, the strategic Joint Venture Partners would be identified and inducted as Equity Partners.<BR><BR>4) The project related activities are yet to commence.<BR><BR>We would like to confirm that any significant and material development would be notified to the exchange immediately upon its occurrence, in accordance with the provisions of the Listing Agreement."
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