Indian Oil to set up Rs 29,000 crore refinery at Nagapattinam in Tamil Nadu
IState-owned oil refiner Indian Oil Corporation (IOC) has received its board’s approval for setting up a new refinery in Nagapattinam in Tamil Nadu at an estimated cost of Rs 29,361 crore. The plant will be established by IOC’s subsidiary, Chennai Petroleum Corporation Limited (CPCL), to meet the demand of petroleum products in southern India. The new refinery will have an annual refining capacity of 9 million metric tonnes.
The board has also given permission for formation of a joint venture between IOC and CPCL, where each will hold 25 per cent stake in the new plant while the balance will be owned by other investors, subject to regulatory approval.
“The board of Indian Oil at its meeting held on January 29, 2021, has accorded approval for implementation of 9 MMTPA refinery at Cauvery Basin, Nagapattinam in Tamil Nadu by Indian Oil’s subsidiary company, Chennai Petroleum Corporation Limited (CPCL) at an estimated cost of Rs 29,361 crore, to meet the demand of petroleum products in southern India,” the state-owned oil marketing company said in a filing to the Bombay Stock Exchange on Friday.
“The board has also accorded in-principle approval for formation of a joint venture between IOC and CPCL with equity holding of 50 per cent (i.e. 25 per cent each in the Joint Venture) and balance to be held by financial / strategic / public investors to be identified later, for implementation of the project, subject to approval of NITI Aayog and other statutory approvals,” it added.
