Addressing the annual general meeting of shareholders here on Wednesday last, company chairman and managing director KL Kumar said the public investment board, the apex decision making body for the public sector enterprises investment plans, has finally cleared the 6 mmtpa capacity expansion project proposed by the company a couple of years back. The company has structured the Rs 4,320 crore on a debt equity ratio of 65:35 basis, with the equity portion aggregating to nearly Rs 1500 crore.

"As per the reports given by leading financial institutions, the market will substantially back the company debt papers. The company has already obtained positive indications from various banks and financial institutions to participate in its loan requirement of the project amounting to Rs 3,000 crore," Kumar told shareholders.

The project, which is now before the Government of India for final clearance, aims to bring in scale economies, maximisation of distillation through residue up-gradation and product quality improvement. The project will also cut the transportation cost of crude drastically as the company is setting up a single buoy mooring system as part of the expansion project. The company has set a time frame of 36 months to complete the project once it gets the final go ahead from the Centre, Kumar said.

The company has reported an all-time high turnover of Rs 5,768 crore for the fiscal year ended March 31, 2000. However, the margins were under tremendous pressure following high degree of volatility in world crude prices during the year. This has knocked the profit before tax (PBT) this year by Rs 211.52 crore to Rs 283.71 crore. KRL has also achieved an all time high crude throughput of 78,30,010 tonnes during the year 1999-00 compared to the 77,70,274 tonnes during the previous year, Kumar said.

He said considering the long-pending demand of the shareholders, the director board of the company has decided to come out with a 1:1 bonus issue subject to the necessary approvals from authorities concerned. CRL is listed on Cochin Stock Exchange, National Stock Exchange, Bombay Stock Exchange and Calcutta Stock Exchange.

The company has signed an agreement with the NSDL last year for dematerialising its share and as of now 32.7 per cent of its floating shares are available in demat form, Kumar said.

KRL in association with Petronet India Ltd and BPCL is executing a cross-country, multi-product pipeline company, Petronet CCK connecting Kochi, Coimbatore and Karur. The work on the pipeline venture began early this year and is expected to compete by the turn of the year 2001.