Chennai Petroleum's Ambitious Cauvery Basin Refinery Project Moves Forward

The Chennai Petroleum Corporation Ltd (CPCL) has taken a significant step by formally requesting government approval for its Cauvery Basin Refinery Project, valued at Rs 36,400 crore, in Tamil Nadu.

According to CPCL Managing Director H Shankar, the company has acquired approximately 1,300 acres in Nagapattinam to set up a refinery with a 9 Million Metric Tonne Per Annum capacity. Earlier plans involved a smaller capacity operation opened in 1992, which was closed in 2019 due to insufficient production.

Citing an increase in project costs from Rs 29,361 crore to Rs 33,023 crore, and now further revised, the collaboration between Indian Oil Corporation and CPCL has shifted to a 75% and 25% stake, respectively. With the project back on track, the focus now turns to revamping configurations to enhance petrochemical production intensity, a key component in refining profitability.

(With inputs from agencies.)