The report is a part of the ongoing restructuring at Nocil and will play a key role in deciding the price at which giant multinational Shell will acquire shares from the Mafatlals. According to sources close to the company, the value per share is expected to be slightly higher than Rs 65.

Although the plant is a key component of the total valuation, according to sources, the unit itself may not be in use much longer, since Shell will be setting up a new facility soon. The new 6-lakh-tonnes per annum petrochemicals project of Shell, estimated at Rs 4,200 crore, is expected to come up on the 450 acres of land that Nocil has purchased from the Maharashtra Industrial Development Corporation. This property is in close proximity to the existing petrochemical plant.

Shell and itssubsidiary Montell plan to invest over $1.2 billion into the new project to be completed by 2003. The expansion and modernisation of the new company, to be termed project Lotus, will be headed by Shell representative, Gean Michell Couteau.

All the 2,010 employees of Nocil's petrochemicals division will be absorbed into the hived-off entity, Nocil Petrochemicals. The company is calling an extraordinary general meeting on October 31 to decide on the financial aspects of the deal.

It is also expected that employees of Nocil's petrochemicals division will be offered voluntary-retirement scheme and it is learnt that the company wants about 450 employees to opt for the scheme. Nocil's existing petrochemicals complex comprises a naptha-cracker plant which manufactures 75,000 tonnes per annum of ethylene along with proportionate quantities of propylene, butadiene and benzene.