RIL tie-up buzz cheers up Bongaigaon

Dalal Street Spikes

 Market was abuzz with talks that BRPL, the subsidiary of Indian Oil Corporation (IOC) is looking at tying up with RIL to restart its idle petrochemicals plant, which makes PSF and DMT.

 RIL would provide the raw material for the production of PSF and also arrange to sell the product, the market rumours suggested.

 BRPL was forced to suspend operations at the petrochemicals unit in October 2001. The unit was shut due to its sub-economic size and the higher cost of production, which resulted in un-remunerative product prices.

 Analysts say any move to revive the unit would augur well for BRPL, as the unit has been incurring heavy losses.

 The PSF and DMT unit incurred a loss of Rs 40 crore in FY03. The plant has the capacity to produce 30,000 tonne of PSF and 45,000 tonne of DMT.