Chennai Petroleum forms JV for Rs 315.8 billion refinery

Chennai Petroleum Corporation Limited (CPCL) has formed a joint venture (JV) with IOCL, its parent entity and other entities to construct a refinery with a capacity of 9 mtpa at a cost of Rs 315.8 billion at the Cauvery basin at Nagapattinam in Tamil Nadu. The new refinery will be built after the existing refinery with 1 mtpa capacity is dismantled. CPCL aims to produce liquefied petroleum gas, aviation turbine fuel, petroleum and diesel of Bharat Standard (BS)-VI grade. It will invest around Rs 25.7 billion and hold around 25 per cent stake in the refinery, while IOCL and other investors, including Axis Bank and ICICI Bank, are expected to provide the rest of the funding.