Enabling works under way for State’s second refinery in Nagapattinam
Enabling works, including laying of roads, construction of peripheral walls and drains, and provision of lighting, are under way for the construction of Cauvery Basin Refinery and Petrochemicals (CBRPL) project, the State’s second petroleum refinery in Nagapattinam.
The foundation stone for the ₹33,023crore refinery with nine million tonnes per annum (MMTPA) capacity and a petrochemical park was laid by Prime Minister Narendra Modi in 2021.
CPCL Managing Director Arvind Kumar told The
Foundation stone for the ₹33,023crore refinery and a petrochemical park was laid by the PM in 2021
Hindu that the refinery would now be constructed as a joint venture of Indian Oil Corporation Ltd. (IOCL) and Chennai Petroleum Corporation Ltd. (CPCL).
The IOCL would hold 75% of the share capital and the CPCL would hold the rest.
The cost of the refinery had been revised from ₹29,361 crore to ₹33,023 crore, an increase of around 15%.
“Recently, the
IOCL
Board approved the increase in estimate and last month the CPCL Board approved it. We have now set rolling the process of obtaining clearance from the Cabinet Committee on Economic Affairs.
It is likely to take three months and from the date of their approval, the works will take 39 months to complete,” he said.
Asked about land acquisition, Mr. Arvind Kumar said the company already owned 600 acres of land, but it needed a similar stretch, which was acquired by the State government.
There was some delay due to a section of people wanting additional compensation, which was decided and awarded by an official committee.
“The lands were handed over to us in October 2023,” he explained. “By that time, 10% of the engineering work had been done and those are proceeding as planned. The larger contracts will come into force once the clearance is obtained,” he added.
The Stateoftheart refinery would produce petrol and diesel conforming to BSVI specifications, polypropylene as a valueadded product, LPG and aviation turbine fuel. It would get a desalination plant for requirement of the refinery and local residents.