Chennai Petroleum Corp forms joint venture for Rs 31,580-cr refinery

Joint venture formed to implement 9 MMTPA refinery project at Cauvery Basin Refinery

Chennai Petroleum Corp Ltd said on Tuesday it has formed a joint venture with its parent company Indian Oil Corp and others to build a 9 MMTPA refinery at a cost of Rs 31,580 crore in Tamil Nadu.

CPCL, in which National Iranian Oil Company has about 15% stake, was operating a small refinery at the Cauvery Basin at Nagapattinam, where the new plant will be located.

The new refinery will come up after dismantling the existing 1 million metric ton per annum (MMTPA) refinery, according to CPCL's website, and will produce liquefied petroleum gas, BS VI quality gasoline, diesel and aviation turbine fuel.

CPCL will hold 25% stake in the new refinery for an investment of Rs 2,570 crore, while IOC and other seed equity investors including Axis Bank, HDFC Life Insurance Co, ICICI Bank, ICICI Prudential Life Insurance Co and SBI Life Insurance Co , will hold the rest.