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SPIC to get dues from KNPC soon

M.Ramesh

CHENNAI, July 13

SOUTHERN Petrochemical Industries Corporation's claim of Rs 58.65 crore from Kuwait National Petroleum Company (KNPC), is likely to get settled shortly, SPIC's Vice-Chairman, Mr P.R. Sundaravadivelu, said today.

The actual amount that SPIC would get is not yet known, but any cash inflow will be helpful to SPIC, whose net profit for last year dropped mainly because of the high interest costs.

The claim pertains to a maintenance contract undertaken by SPIC's SMO division, for KNPC's Mina Abdullah refinery. The contract concluded in October 1999.

SPIC has claimed the Rs 5,865.37 lakh towards compensation for the additional cost incurred in the execution of the contract. In an informal chat with Business Line today, Mr Sundaravadivelu said that no money had been received last year (2000-01), but s omething would come in the current year.

Asked about SPIC selling its stake in Caltex SPIC, a joint venture in LPG marketing, Mr Sundaravadivelu said, ``we would know by the end of this month''.

He said that Caltex had taken the issue to its headquarters in Singapore. Asked about the pricing of the shares, he said, ``we have worked out a formula'' by which the price could be calculated.

On SPIC's urea project in Jebel Ali, Dubai, Mr Sundaravadivelu said that SPIC had received a letter from the authorities promising gas supplies, and a MoU would be signed shortly. However, the signing of the gas supply contract, being a detailed document , would take a few months. Work on the project would, however, continue, he said.