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IOC board gives approval to set up Rs 27k cr refinery by subsidiary CPCL

The expansion was subject to the approval of board of IOC, the holding company of CPCL

Press Trust of India  |  New Delhi 

Indian Oil Corporation, IOCL, IOC
Indian Oil Corporation logo outside a fuel station in New Delhi. Photo: Reuters

(IOC) on Monday said its board has given approval to setting up of a Rs 27,460 crore by its subsidiary, Petroleum Corp Ltd.

The Board of Directors of CPCL had in April this year recommended setting up a new 9 million tonnes a year at an estimated cost of Rs 27,460 crore (with an accuracy of plus-30 per cent).


The expansion was subject to the approval of board of IOC, the holding company of CPCL.

"The Board of Directors of at the meeting held on September 22 accorded In-principle approval for setting up a new 9 million tonnes per annum at Cauvery Basin, Nagapattinam at an estimated cost of Rs 27,460 crore and for carrying out pre-project activities," said in a regulatory filing.

The final approval of the project would be obtained after preparation of Detailed Feasibility Report of the project.

The planned will be CPCL's third It currently operates a 10.5 million tonnes Manali in Tamil Nadu.

It also has a smaller 1 million tonnes Nagapattinam

CPCL, formerly known as Madras Refineries Ltd, was formed as a joint venture in 1965 between the Government of India, AMOCO and National Iranian Oil Co (NIOC) having a shareholding in the ratio of 74 per cent, 13 per cent, 13 per ent respectively.

In 1985, AMOCO disinvested. After this, government held 84.62 per cent and NIOC 15.38 per cent.

The government later disinvested 16.92 per cent of the paid. The company was listed in 1994. acquired government stake in 2000-01. currently holds 51.89 per cent stake in CPCL while NIOC holds 15.40 per cent.

First Published: Mon, September 25 2017. 18:18 IST
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