INDIAN OIL CORPORATION LTD. - Indian Oil Corporation Ltd reply to clarification sought by the exchange

The Exchange has sought clarification from Indian Oil Corporation Ltd with respect to news article appearing in Business Standard on January 05, 2015 titled "IOC to form JV for Rs. 5,150-crore LNG terminal project in TN within a month"<BR><BR>Indian Oil Corporation Ltd 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."