Chennai Petroleum lines up Rs 4,000 cr for expansion

Chennai Petroleum Corporation Ltd,  a subsidiary of Indian Oil Corporation Ltd, has lined up new projects with investments of Rs 4,000 crore. These will be earmarked for expansion of refining capacity, upgradation of refinery residues to distillates and others, according to the company's annual report.

A major chunk of the investment, up to Rs 3,110.36 crore, will be towards the residue upgradation project. The project will maximise the distillate yield of the Manali refinery and increase the percentage of high sulphur crude processing.

It involves installation of a delayed coker unit and revamping of existing hydro cracker unit along with other associated facilities, resulting in a 7 per cent rise in the yield of distillate.The project, which is scheduled to be completed by 2015, was accorded with the environment clearance in March, 2013, by the ministry of environment and forests.

The company has also lined up another Rs 279 crore to set up a mounded bullet storage facility for LPG and petrochemical feedstock. It  was taken up in April 2013 and will be mechanically completed by October 2014-end, said the annual report.