Chennai Petroleum, IOC signs JV agreement for Rs 31,580 crore TN refinery

Chennai Petroleum Corporation (CPCL), Indian Oil Corporation Limited (IOCL) and seed equity partners have signed a joint venture agreement for the upcoming 9 million tonne per annum (MTPA) refinery and petrochemicals project at Nagapattinam in Tamilnadu.  The project is expected to see an investment of Rs 31,580 crore.

IndianOil and CPCL will together hold 50 per cent of equity stake (25 per cent each) in the joint venture company (JVC) and the balance 50 per cent stake would be held by financial and strategic investors, to be identified at a later stage, the company said in a statement. Pending on boarding of the financial/strategic investor, the JVC is being incorporated with the two promoters, IndianOil and CPCL.

The Rs 31,580 Crore refinery complex will cater to the petroleum products demand of the Southern region of India and provide impetus for economic development of the region. The project would result in substantial socio-economic benefit to the country in general, and more specifically to the State of Tamilnadu, it added.