IOCL board approves revised cost of Cauvery Basin refinery expansion

In a notable development, the board of Indian Oil Corporation Limited (IOCL) has approved the price revision of Cauvery Basin refinery expansion from Rs 293.61 billion to Rs 330.23 billion. This represents an increase of Rs 36.62 billion or 12.5 per cent. Additionally, the board approved a revision in the capital structure of the joint venture, with IOCL holding 75 per cent equity and Chennai Petroleum Corporation Limited (CPCL) holding 25 per cent equity. The project involves capacity expansion of the Cauvery Basin refinery in Nagapattinam in Tamil Nadu to 15 million tonnes per annum (mtpa). Currently, Nagapattinam has a 1 mtpa plant and Phase I involves capacity expansion of the refinery from 1 mtpa to 9 mtpa which will be later expanded to 15 mtpa under Phase II.