The board of directors of Chennai Petroleum Corporation (CPCL) has approved the proposal for formation of a joint venture company for implementing the 9 MMTPA refinery project at Cauvery Basin at Nagapattinam in Tamil Nadu, at an estimated cost of Rs 31,580 crore.
CPCL will hold 25% stake in the new refinery while Indian Oil and other seed equity investors such as Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance will hold the rest. The board has also accorded approval for equity investment of up to Rs 2,570 crore by CPCL in the JV.
CPCL is setting up a new grassroot refinery of 9 MMTPA capacity at Nagapattinam and will be set up in an area of about 1,300 acres. The new refinery will produce petrol and diesel of Bharat Stage-VI specifications and polypropylene as a value added product, at a project cost of Rs 31,580 crore.
Further investment of about Rs 4,000 crore will flow into the project from other stakeholders on build own and operate (BOO) basis.
Also read: Amazon India launches new delivery station in Ghaziabad ahead of festive season
“All consultants have been lined up and detailed engineering and tendering activities are in progress. Site enabling works have also commenced. In addition to the existing 618 acres of land, acquisition of a further 606 acres from government of Tamil Nadu is in advanced stage. The project is expected to be completed by June 2025,” CPCL said in its annual report 2022.
Besides, the company is planning to implement a project for production of group II lube oil base stocks. First stage approval for the project has been obtained. Pre-project activities such as selection of licensors, environment studies and selection of EPCM consultant are in progress.