MRL-Spic accord likely soon

CHENNAI, July 18: The board of public sector Madras Refineries Ltd MRL today held an inconclusive discussion' on the jinxed joint vent...

CHENNAI, July 18: The board of public sector Madras Refineries Ltd MRL today held an inconclusive discussion8217; on the jinxed joint venture project with fertiliser giant Spic, Arochem.

The board reportedly debated the pros and cons of a compromise with Spic on the Arochem which exists merely on paper. The board, it is understood, reviewed Arochem in the light of a directive from the union petroleum ministry to explore the possibility of arriving at an amicable and mutually beneficial settlement with Spic.

It is gleaned from ranking MRL sources that the board felt that 8220;some more things have to be sorted out8221; before taking a final decision on the matter. If sources are to be believed, the MRL board was keen to comprehend the legal and financial implications involved in taking a eventual decision viz-a-viz MRL8217;s involvement in Arochem.

Nonetheless, highly-placed MRL sources expressed optimism that the Arochem imbroglio would be resolved by early next month.

The representatives of the National IranianOil Company NIOC did not attend today8217;s board meeting. By the time the board met next time which is more likely sometime early next month, sources said, the Spic-MRL stand-off over Arochem would have been happily resolved. MRL sources said nominee directors of NIOC would also be present at the next board meeting.

The MRL confabulations over Arochem were the consequence of a reported fiat from petroleum ministry which sought the public sector company to resolve the Arochem issue early 8211; either by pulling out or by allowing induction of a new partner or by new workable and practical move.

Arochem came into being following initiatives shown by four successive prime ministers. Nearly nine years have gone by since it was born. Still, it remains a paper entity. MRL and Spic have, in the meanwhile, have locked horns. They find themselves fighting in the corridors of court. MRL took strong objection to Spic floating a competing project. Spic claimed that it did so in the wake of liberalisation of petroleumsector and with a good intention to speed up the whole project. MRL till date refused to buy this arguement and was livid over the improper8217; allotment of a portion of Arochem land to Spic project. When MRL moved the court, the competing project of Spic 8211; SPC 8211; came to a grinding half following a High Court directive.