CPCL to invest Rs 1,495 cr to create BS-VI fuel for automobile industry

It is looking at setting up a 9 mn tonnes per annum expansion project

Chennai Petroleum Corporation (CPCL), a subsidiary of Indian Oil Corporation (IOC), is planning to invest about Rs 1,495 crore to produce BS-VI fuel for the automobile industry. The only stand-alone refinery in the country, CPCL, said that it is looking at setting up a nine million tonnes per annum (mtpa) expansion project. All the Indian refineries are required to produce BS-VI specification auto fuels, effective from April 2020, in order to reduce sulphur content in automotive fuels, to improve environmental aspects.

CPCL has initiated measures to revamp diesel hydro-treating (DHDT) unit capacity and to set up a new FCCU gasoline treatment plant to meet HSD and MS quality standards, respectively.

The company said estimated investment in the proposed project is about Rs 1,495 crore. The existing DHDT unit is being revamped to increase the capacity from 1.8 to 2.4 mtpa along with a new sulphur recovery unit and other associated facilities.

Further, to meet the requirement of BS-VI petrol norms, installation of new FCC gasoline desulphurisation unit with a capacity of 0.6 mtpa along with other associated facilities, is under implementation. The project is expected to be mechanically completed by June 2019.

CPCL’s refinery expansion plans in the Cauvery basin refinery in Nagapattinam district of Tamil Nadu is awaiting for various regulator approvals for further procedures.