Chennai Petroleum Corporation has been given in-principle approval for its Rs 27,000 crore refinery expansion project in Tamil Nadu, a top official said today.
CPCL, a group company of Indian Oil Corporation, has proposed the expansion of its refinery in Nagapattinam district.
"As far as in-principle is concerned, it has been given by the CPCL Board and IOCL Board. To start with, we are targeting about nine million tonnes (production)," IOCL Chairman Sanjiv Singh told reporters here.
The refinery can also be expanded further depending upon the requirement, he said after reviewing the financial performance of CPCL.
"The likely investment is of the order of Rs 27,000 crore (for the project). We are in the process of technology selection. Our target (is to commission it) by first quarter of early next year," he said.
To a query on capital expenditure plans for the current financial year, he said it was Rs 1,000 crore and most of it would be met by internal accruals.
On the Nagapattinam refinery expansion, he said the company would tap the market for raising funds.
Replying to a question, Singh said the option of merging CPCL with IOCL "is definitely very much open."
He said, "We have one foreign partner also. NIOC (National Iranian Oil Company) of Iran owns 15 per cent stake (in CPCL)."
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