IOCL’s ₹33,000 Cr Strategic Pivot in Tamil Nadu

State-run oil major Indian Oil Corporation Limited (IOCL) is reconsidering its proposed ₹33,000 crore greenfield refinery in Nagapattinam, Tamil Nadu. Prompted by internal assessments raising red flags over financial viability and long-term returns, the company is conducting a strategic review to evaluate converting the site into a standalone petrochemical complex instead.

First sanctioned in January 2021 at an estimated cost of ₹29,361 crore through a joint venture with subsidiary Chennai Petroleum Corporation Limited (CPCL) and financial institutions, the project saw its cost revised to ₹33,023 crore in March 2024, alongside an increase in IOCL's stake to 75%. A final decision on whether to proceed with the refinery or pivot to petrochemicals will hinge on further commercial and strategic feasibility studies.

News by Rahul Yelligetti.