The JV will include CPCL’s parent firm Indian Oil and financial institutions Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company
India’s Chennai Petroleum Corporation Limited (CPCL) has announced that its board of directors has green lighted a proposal to form a joint venture (JV) to build a Rs315bn ($3.95bn) refinery in the southern state of Tamil Nadu.
In a stock exchange filing, the company said that the JV will include its parent firm Indian Oil and financial institutions Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company.
The 9 million metric tonne per annum (MMTPA) refinery project will be located at Cauvery Basin Refinery in Nagapattinam district. It will be developed after dismantling the existing 1 MMTPA refinery, Reuters reported.
The new refinery will produce liquefied petroleum gas, BS VI quality gasoline, diesel and aviation turbine fuel among others.
With a Rs25.7bn investment in the JV, CPCL will hold 25% stake in the new refinery. The remaining holding will be with Indian Oil and other seed equity investors.
According to a news report published in The Hindu, the project is expected to complete by June 2025.
Recently, L&T secured a new engineering, procurement, construction, and commissioning (EPCC) contract from Indian Oil.
Indian Oil is currently implementing the Panipat Refinery Expansion (P-25) project to boost refining capacity from 15 MMTPA to 25 MMTPA.
The Hydrocarbon-Onshore division of L&T’s Energy Business was selected to deliver a Residue Hydrocracker Unit (RHCU) for the P-25 Project.