CPCL Unveils Rs. 1,000-crore Capex Plan for 2018-19

Chennai Petroleum Corporation Ltd. (CPCL), a subsidiary of Indian Oil Corporation (IOC), will incur a capital expenditure of Rs. 1,000-crore for 2018-19 to support various ongoing projects.

“CPCL is implementing a number of projects to improve reliability, profitability and meet BS VI product quality specification,” said informed Mr. S.N. Pandey, Managing Director, CPCL. In all, the total cost of those projects that are under implementation is estimated at Rs. 2,540-crore.

A new crude oil pipeline project is expected to be mechanically completed by July, the BS-VI project during 2019-20 and a RLNG (re-gasified liquefied natural gas) project will be completed in phases from November 2018 onwards.

The CPCL board has given its in-principle approval for the proposed 9-mtpa refinery at Cauvery Basin, Nagapattinam, in Tamil Nadu, at a cost of Rs. 27,450-crore. Preparation of Detailed Feasibility Report (DFR) is on and is expected to be completed by March 2019.

“The project cost could be plus or minus 30%. CPCL might go to the market to raise funds for the new refinery. About 90% of the required land is already available with the company,” said Mr. Sanjiv Singh, Chairman, IOC.

Financial performance

For the year ended March 2018, CPCL reported a 11% drop in net profit at Rs. 913-crore compared with Rs. 1,029-crore as the tax incidence of the previous year included the effect of balance unabsorbed depreciation. Revenue from operations was Rs. 44,188-crore against Rs. 46,608-crore, registering a growth of 9%. In 2017-18, CPCL achieved highest-ever crude throughput of 10.789-mtpa.