Mumbai, June 8: The Dharamsi Morarji Chemical Company (DMCC) is planning to restructure the equity of its planned Rs 200-crore chemical port terminal at Navlakhi, Gujarat. This follows the withdrawal by the US-based Caltex from the project.

According to sources, other parties are interested in picking up a stake in the project. The board will take a final decision on the equity structure by the end of the month. The capital structure and management set up of the new company will be finalised shortly.

As per the earlier MoU, DMCC was to hold a 48 per cent stake and Caltex 26 per cent. The third partner was Dubai-based Emirates National Oil Company (Enoc). Caltex was to have two directors on the board of the new company.While Enoc's responsibility was to source LPG from Dubai, Caltex was to market it here.

Now with the latter's withdrawal, the Rs 100- crore equity will be restructured so that interested parties can pick up a stake, sources said. DMCC was to invest around Rs 50 crore in the new company.

Work on the chemical and fuel import terminal project has already begun, while tenders have been floated for setting up an LPG jetty. DMCC was to have implemented the project on its own. However, owing to poor market conditions and lack of funding options, it opted for the JV route.

The company had, in 1994, proposed to raise around Rs 150 crore by issuing partly convertible debentures to the public and non-convertible debentures on a rights basis for the import terminal and other capital expenditure.

The project will take two years for completion. The terminal will primarily supply LPG and other chemicals. DMCC posted a net profit of Rs 17.46 crore for the year ended March 31, 1997 and net sales of Rs 210.26 crore.Comment Project will be a money-spinner. DMCC has finally decided to set up the Navlakhi chemical port terminal, which has been delayed for more than a year now. Apart from a chemical unloading facility, the port will have the much-needed cryogenic unloading facilities for which there is a growing demand.After freeing the LPG distribution for the industrial sector, the need for cryogenic ports has increased. The joint venture being set up by DMCC will be a money spinner. The company will benefit from the port facility as it imports nearly 65 per cent of its raw materials. The Nhava Sheva site will help DMCC in better inventory control and save on demurrage costs.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.