Indian Oil Corporation (IOC) will maintain 75% fairness in the proposed 9 million tonne grassroots refinery in Tamil Nadu’s Nagapattinam with subsidiary and three way partnership companion Chennai Petroleum Corporation (CPCL) holding the remaining stake in the project whose price has been revised upwards by ₹3,662 crore.
Revision in the price of the Cauvery Basin Refinery and Petrochemicals (CBRPL) project from ₹29,361 crore to ₹33,023 crore in addition to change in the capital construction of the JV — with 75% for the oil main and 25% for CPCL — was accredited by its Board, Indian Oil stated in a submitting on Thursday. It, nevertheless, didn’t cite causes for the rise in the fee.
As per the sooner proposal, Indian Oil and CPCL have been to separate 50% fairness equally with monetary/strategic and public traders holding the remaining 50% stake in the refinery project conceived to exchange the 1 MT refinery of CPCL in Nagapattinam and meet the rising demand for petroleum merchandise in southern India. The refinery will produce petrol and diesel conforming to BS-VI specs and Polypropylene as a value-added product.
In its annual report for 2022-23, CPCL had stated detailed feasibility report for the brand new refinery project has been accomplished and the ability will produce LPG, aviation turbine gasoline moreover petrol and diesel. The project additionally features a polypropylene unit as a part of petrochemical integration with potential to additional improve manufacturing of petrochemicals in future. Single level mooring and desalination plant are envisaged for crude import and refinery water requirement respectively. The firm has signed an MOU with Tamil Nadu authorities for availing structured package deal of incentives for the project, it stated.
Prime Minister Narendra Modi had laid the inspiration stone of the refinery project in February 2021.
