IOC board clears its arm CPCL'S `27K cr re­fin­ery

Resource Digest - - CONTENT -

In­dian Oil Cor­po­ra­tion Ltd (IOCL) on Mon­day said its board has given ap­proval to set­ting up of a Rs 27,460 crore re­fin­ery by its sub­sidiary, Chen­nai Petroleum Corp Ltd (CPCL). The Board of Di­rec­tors of CPCL had in April this year rec­om­mended set­ting up a new 9 mil­lion tonne-a-year re­fin­ery at an es­ti­mated cost of Rs 27,460 crore (with an ac­cu­racy of plus-30 per cent).

The ex­pan­sion was sub­ject to the ap­proval of the board of In­dian Oil Cor­po­ra­tion Ltd, the hold­ing com­pany of CPCL. "The Board of Di­rec­tors of IOC at the meet­ing held on Septem­ber 22 ac­corded In-prin­ci­ple ap­proval for set­ting up a new 9 mil­lion tonnes per an­num (mtp) re­fin­ery in the 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 CPCL'S third re­fin­ery. It cur­rently op­er­ates the 10.5 mil­lion tonne Manali re­fin­ery in Tamil Nadu.

It also has the smaller 1 mil­lion tonne Na­ga­p­at­ti­nam re­fin­ery. CPCL, for­merly known as Madras Re­finer­ies Ltd, was formed in 1965 as a joint ven­ture be­tween the Union Gov­ern­ment, AMOCO and Na­tional Ira­nian Oil Com­pany (NIOC), hav­ing a share­hold­ing in the ra­tio of 74 per cent, 13 per cent and 13 per­ent re­spec­tively.

In 1985, AMOCO dis­in­vested its share. Af­ter this, the gov­ern­ment held 84.62 per cent and Na­tional Ira­nian Oil Com­pany 15.38 per cent. The Gov­ern­ment later dis­in­vested 16.92 per cent. The com­pany was listed in 1994. In­dian Oil Cor­po­ra­tion Ltd ac­quired the gov­ern­ment stake in 2000-01 and cur­rently holds 51.89 per cent stake in CPCL while Na­tional Ira­nian Oil Com­pany holds 15.40 per cent.

In­dian Oil ac­counts for nearly half of In­dia's petroleum prod­ucts mar­ket share, 35 per cent na­tional re­fin­ing ca­pac­ity and 71 per cent down­stream sec­tor pipe­lines through ca­pac­ity. The In­dian Oil Group owns and op­er­ates 11 of In­dia's 23 re­finer­ies, with a com­bined re­fin­ing ca­pac­ity of 80.7 mil­lion met­ric tonnes per an­num.

In­dian Oil's cross-coun­try pipe­line network, for trans­porta­tion of crude oil to re­finer­ies and fin­ished prod­ucts to high-de­mand cen­ters, spans over 13,000 km. The com­pany has a through­put ca­pac­ity of 80.49 MMTPA for crude oil and petroleum prod­ucts and 9.5 MM­SCMD for gas.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.