Indian Oil Approves INR 27K cr Cauvery Basin Refinery Project

Indian Oil Corp (IOC) said that its board has given approval to setting up of a Rs 27,460 crore refinery by its subsidiary, Chennai Petroleum Corp Ltd.

The board of directors of CPCL had earlier this year recommended setting up a new 9 million tonnes a year refinery at an estimated cost of Rs 27,460 crore (with an accuracy of plus-30 percent).

"The board of directors of IOC has approved for setting up a new 9 million tonnes per annum refinery at Cauvery Basin, Nagapattinam at an estimated cost of Rs 27,460 crore and for carrying out pre-project activities," IOC said in a regulatory filing.

The final approval of the project would be obtained after preparation of detailed feasibility report of the project.

The planned refinery will be CPCLs third refinery. It currently operates a 10.5 million tonnes Manali refinery in Tamil Nadu.

It also has a smaller 1 million tonnes Nagapattinam refinery.

CPCL, formerly known as Madras Refineries Ltd, was formed as a joint venture in 1965 between the Government of India, AMOCO and National Oil Co (NIOC) having a shareholding in the ratio of 74 percent, 13 percent, 13 percent respectively.

In 1985, AMOCO disinvested. After this, government held 84.62 percent and NIOC 15.38 percent.

The government later disinvested 16.92 percent of the paid. The company was listed in 1994. IOC acquired government stake in 2000-01. IOC currently holds 51.89 percent stake in CPCL while NIOC holds 15.40 percent.