Chennai Petroleum Company (CPCL), a subsidiary of Indian Oil Company (IOCL), mentioned it has kickstarted the actions for the institution of proposed 9 MMTPA grass root refinery, to be developed together with IOCL, at an estimated value of ₹31,580 crore at Nagapattinam, Tamil Nadu.
Procurement and engineering actions for the mission have already commenced and web site actions will now achieve momentum. The mission will act as a catalyst for growth of downstream petrochemical and ancillary industries, in line with an announcement.
The refinery mission is being arrange with a debt-equity ratio of 65:35. The mission is proposed to be executed via a joint-venture firm with 50 per cent possession to be held equally by CPCL and Indian Oil Company and steadiness 50 per cent by different strategic or monetary buyers, to be recognized at a later stage.
CPCL will limit its fairness contribution to 25 per cent of the overall fairness of the JV firm, which might be ₹2,570 crore and the identical might be funded primarily from the inner assets of CPCL in the course of the interval 2021-25.
The brand new refinery mission, for which the Prime Minister laid the inspiration stone via video convention mode in February 2021, is predicted to be accomplished in 45 months’ time. The Authorities of Tamil Nadu has accredited an incentive package deal to the mission as per the Tamil Nadu Industrial Coverage 2014.
Throughout the first week of this month, the corporate additionally acquired the State authorities order for acquisition of 606 acres of land parcel adjoining the prevailing refinery web site, at Nagapattinam. Chief Minister of Tamil Nadu handed over the order to SM Vaidya, Chairman, IOCL.
Instantly after the receipt of the order, CPCL awarded contracts amounting to ₹1,538 crore to Undertaking Administration Consultants Engineers India (EIL), McDermott and Tata Consulting Engineers (TCE).
Arvind Kumar, Managing Director, CPCL took inventory of the prevailing infrastructure at Karaikal Port and its applicability for evacuation of merchandise after commissioning of the brand new mission.