CPCL plans ₹1,000 cr. capex

Chennai Petroleum Corporation Ltd. (CPCL), has planned a capital expenditure of ₹1,000 crore on various ongoing projects during the current fiscal, said a top official.

“We will be investing ₹1,000 crore during the current financial year,” said S.N. Pandey, MD, CPCL. “We are currently implementing a number of projects to improve reliability, profitability and to meet BS-VI product quality specifications at a cost of ₹2,540 crore.”

The investment would be made in a BS-VI project (₹1,858 crore), new crude oil pipeline (₹258 crore) and a regassified liquefied natural gas (RLNG) project (₹421 crore). While the new crude oil pipeline project is expected to be mechanically completed by July 2018, the BS-VI project would be implemented during 2019-20. RLNG would be completed in phases from November 2018, he said. On Thursday, the board of CPCL gave its in-principle approval for setting up a 9-million tonne refinery at Cauvery Basin, Nagapattinam, in Tamil Nadu, at a cost of ₹27,450 crore.

Preparation of a Detailed Feasibility Report is underway and is expected to be completed by March 2019.

“The project is expandable in the future. The cost could be plus or minus 30%. CPCL might go to the market to raise funds for the Nagapattinam refinery,” said Sanjiv Singh, Chairman, CPCL.

The costing would happen next year, followed by finalising the debt equity ratio. After this, the quantum of finance to be raised would be decided, Mr. Singh said.

Profit falls

For the year ended March 2018, the firm reported a 11% fall in net profit to ₹913 crore from ₹1,029 crore, as the tax incidence of the previous year included the effect of balance unabsorbed depreciation, which was availed in full. The board declared 185% dividend for the year.