Chennai Petroleum Corporation Limited (CPCL) has proposed the implementation of the 9 million tons per annum Refinery Project in Cauvery Basin Refinery (Nagapattinam, Tamil Nadu), to the Board of Indian Oil Corporation Limited (IOCL).
To implement this plan, CPCL’s Board of directors proposed a joint venture with IOCL, at an anticipated cost of Rs 28,983 crore ($3.8 billion).
This project comprises a polypropylene unit apart from the refinery complex. As a preparatory step, operations at the refinery were ceased starting April 01, 2019.
CPCL entered into a MoU with Government of Tamil Nadu for availing a structured package of incentives. Its request for additional land acquisition has also been permitted by Government of Tamil Nadu and Pondicherry.
Together, CPCL and IOCL will be holding 25% stake each in the joint venture and the remaining 50% would be held by a strategic/financial/public investor. The Board of CPCL has given in-principle approval to invest an amount till about Rs 2,500 crore ($331.4 million) in the joint venture, subject to required authorizations.
CPCL’s refineries in Manali and Nagapattinam have a combined refining capacity of over 11.5 million tons per annum.
IOCL is engaged in refining business and its segments include sale of petroleum products, sale of petrochemicals and other businesses.