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