CPCL plans 9 MMTPA expansion at Cauvery Basin Refinery on JV basis

IOCL and CPCL to jointly hold 50% stake in JV, rest to come from financial, strategic and public investors

Chennai Petroleum Corporation Ltd (CPCL) has said that its Board of Directors has put forward a proposal to its majority shareholder, Indian Oil Corporation Ltd (IOCL), for setting up a 9 million metric tonnes per annum (MMTPA) plant at Cauvery Basin Refinery, Nagapattinam district, Tamil Nadu.

The project would be executed through a joint venture (JV), and is estimated to cost Rs 28,983 crore.

The Board also accorded in-principle approval for incorporation of an JV in which IOCL and CPCL would jointly hold 50 per cent stake, but in which CPCL would invest up to Rs 2,500 crore. The remaining 50 per cent will held by financial, strategic and public investors. 

CPCL in 2019 had signed a Memorandum of Understanding with the Tamil Nadu government for the project.

The company already has its second refinery at Cauvery Basin, which was set up with a capacity of 0.5 MMTPA in 1993 and was later enhanced to 1 MMTPA. The main products of the refinery are LPG, Naphtha, superior kerosene, high speed diesel, among others, according to CPCL.