Indian Oil Corporation logo outside a fuel station in New Delhi. Photo: Reuters
The board of directors of Indian Oil Corporation Ltd (IOCL) gave an in-principle approval for the proposal of its subsidiary Chennai Petroleum Corporation Ltd (CPCL) to set up a refinery in Tamil Nadu at an estimated cost of Rs 27,460 crore.
With the IOCL nod, the pre-project activities for proposed refinery with a capacity of 9 MMPTA (with an accuracy of +30%) would be commenced soon, and the final approval of the project would be obtained after preparation of detailed feasibility report, CPCL said in a regulatory filing with stock exchanges.
A pre-feasibility study for the same was carried out through Engineers India, said the management earlier.
Besides its main Manali refinery, CPCL already has a refinery at Cauvery Basin- called as CBR- with over 600 acres of land available with oil jetty and a port. The new refinery would be an expansion of this facility.
The company is executing projects worth Rs 5,200 crore in the next five years, a new crude oil pipeline with an investment of Rs 258 crore.
CPCL has also proposed to replace naphtha and fuel oil with RLNG to be supplied by Indian Oil Corporation Ltd. This will require revamping Hydrogen Generation Units (HGU), modifications in Gas Turbines (GT) and boilers.