The board of Chennai Petroleum Corporation Ltd. (CPCL) has approved a proposal to invest up to ₹2,570 crore in the joint venture with Indian Oil Corporation Ltd. (IOCL) for implementing the 9 mmta Cauvery Basin Refinery (CBR) project in Nagapattinam District of Tamil Nadu costing ₹31,580 crore.
On Monday, the board approved the investment of ₹2,570 crore being its contribution towards 25% stake in the venture, CPCL said in a filing.
CPCL is setting up a grassroot refinery in Nagapattinam with IOC in a joint venture. The other seed equity investors are Axis Bank, HDFC Life Insurance Co., ICICI Bank, ICICI Prudential Life Insurance Co. and SBI Life Insurance Co.
CPCL and IOCL would together hold 50% stake with balance held by financial/strategic/public investors. Other investors would make a further investment of about ₹4,000 crore.
This new refinery would produce LPG, BS-VI quality gasoline and diesel and aviation turbine fuel and polypropylene as a value-added product. The project is expected to be completed by June 2025.
