Chennai Petroleum Corporation Limited (CPCL), a subsidiary of IOCL, is planning to set up a refinery at Narimanam in Nagapattinam district of Tamil Nadu to meet the higher demand for petroleum products in the state. Steps have already been initiated to explore the possibility of capacity expansion at the Cauvery basin refinery where land and other infrastructure are readily available. As per the proposed plan, CPCL may set up either a 6 mt or a 9 mt refinery. The cost per tonne is estimated to be between Rs 2,200 and Rs 2,500. It is likely to take roughly four to five years to set up the unit.