lndianOil to build $4bn oil refinery in Nagapattinam, Tamil Nadu

Indian Oil Corporation Limited (lndianOil) said that its board has sanctioned the construction of an INR2,930 billion ($4 billion) oil refinery at Cauvery Basin, Nagapattinam in Tamil Nadu with a capacity of 9 MMTPA.

The oil refinery project will be taken up by IndianOil’s subsidiary – Chennai Petroleum Corporation Limited (CPCL).

The CPCL refinery is expected to address the demand for petroleum products in southern India.

The board of lndianOil has also given approval in principle for the creation of a joint venture between IndianOil and CPCL with equity holding of 50% (25% each). The remaining 50% balance will be held by financial or strategic or public investors, who will be identified at a later time, for implementation of the oil refinery project, subject to the approval of Niti Aayog and other statutory approvals.