Indian Oil board gives nod for subsidiary to set up Rs 29,000 cr refinery

Sate-owned Indian Oil Corporation’s board has agreed to subsidiary Chennai Petroleum Corporation Ltd (CPCL) setting up a refinery for more than Rs 29,300 crore in Tamil Nadu. The two companies will hold 25 per cent stake each, while the balance will be with other investors.

The 9 MMTPA (Million Metric Tonne Per Annum) refinery will be built at Nagappattinam, with a Polypropylene unit to start with and facility to process crude oil. The process packages have been finalised and a feasibility report completed.

Earlier CPCL said the project would benefit from the land already in possession by CPCL. The proximity to highways and coastal location of the refinery are added advantages for the project. The project location is also apt for crude oil receipt by installation of a SPM facility and product evacuation through the nearby port and also by connectivity to IOCL’s pipeline network.

The project is in line with the expected growth in demand for petroleum products in the southern region. Environmental Clearance for the project is also in an advanced stage of review and approval by MOEF&CC. Cauvery Basin 9 MMTPA project would also stand as an anchor for feedstock generation for downstream industries. The refinery complex will provide impetus for economic development and growth of the region.

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