Prime Minister Narendra Modi will dedicate two oil and gas projects to the nation and lay the foundation stone for a ₹31,500 crore refinery project in Tamil Nadu on February 17.
“The Prime Minister will lay the foundation stone through virtual mode for the proposed 9 million tonnes per annum (MMTPA) grass-root refinery project at Nagapattinam to be set up through a JV between Indian Oil Corporation and Chennai Petroleum Corporation Ltd (CPCL) at an estimated project cost of ₹31,500 crore,” said Rajeev Ailawadi, Managing Director-In-Charge, CPCL.
The new refinery will produce auto fuel meeting BS-VI specifications and polypropylene as a value-added product and anticipates about 80 per cent indigenous sourcing of materials and services. “The project will seek private investors and it is expected to be funded via a debt equity ratio of 35:65. It will create massive job opportunities and about 7,500 people will be employed during the operation phase,” said Ailawadi.
To meet demand growth
P Jayadevan, Executive Director – Tamil Nadu & Puducherry & State Head, Indian Oil Corporation explained that though the Central government was laying more emphasis on clean energy and electric vehicles of late, Nagapattinam refinery project was being taken up in view of the projected demand over the next two decades. “Also, the refineries are being set up in tune with future trends – crude-to-chemical complexes from the earlier stage of crude-to-fuel complexes,” he added. The Prime Minister will also dedicate the Ramanathapuram - Thoothukudi section (143 km) of the Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam- Madurai-Tuticorin Natural Gas pipeline pipeline, which has been set up at the cost of about ₹700 crore.
Natural gas pipeline
“The pipeline shall utilise the gas from ONGC Gas fields and deliver indigenous natural gas as feedstock to Southern Petrochemical Industries Corp Ltd (SPIC) at Tuticorin and other industrial/commercial customers and city gas distribution firms.
Also, the ₹500 crore Gasoline Desulfurisation unit at CPCL, Manali will be dedicated to the nation on February 17. The unit will produce low sulphur (less than 8 ppm) environment-friendly gasoline, which will reduce emission and contribute towards a cleaner environment.