CPCL Seeks Green Light for $36,400 Crore Nagapattinam Refinery

Chennai Petroleum Corporation Ltd (CPCL) has approached the government for approval of its ₹36,400-crore Cauvery Basin Refinery Project in Nagapattinam, Tamil Nadu. The proposed refinery will have a capacity of 9 million tonnes per annum (MTPA), replacing the older 0.5 MTPA unit shut down in 2019.

CPCL Managing Director H. Shankar stated that around 1,300 acres have been acquired for the new facility. Initially planned as part of a long-term expansion strategy, the project received government clearance in 2021, with land acquisition commencing in 2023.

The project's cost, originally estimated at ₹29,361 crore, was revised to ₹33,023 crore by Indian Oil Corporation (IOCL), CPCL’s parent company, in March 2024, and has now further increased to ₹36,400 crore. The ownership structure was also updated, with IOCL holding 75% and CPCL 25%, replacing the earlier joint venture model. CPCL is currently reassessing the plant configuration before seeking final regulatory approvals.

News by Rahul Yelligetti.