CPCL reworking configuration of Nagapattinam refinery, says its MD

Chennai Petroleum Corporation Ltd. (CPCL) is reworking the configuration of its proposed 9 million tonne Cauvery Basin Refinery in Nagapattinam, a ₹36,400-crore project, with a focus on enhancing the petrochemical components.  

CPCL is a group company of Indian Oil Corporation (IOCL).

H. Shankar, who recently took over as Managing Director of CPCL, told presspersons here that the company was looking to improve the project economics by bringing in more petrochemical components such as HDPE, LDPE, LLDPE, and PVC. Earlier, the project had envisaged only a poly propylene plant. The company now had close to 1,300 acres of land acquired for the project. It owned 600 acres originally as part of an existing 1 million tonne per annum refinery, which has since been dismantled.

On the setting up of retail outlets, Mr. Shankar said retailing was not new to CPCL, which supplied 92% of refined fuel to IOCL from its units at Manali in Chennai. About 20 years ago, the company had a retail outlet at Sriperumbudur. But that was wound up when retailing went to IOCL. “Now, since we have obtained approval from the [Petroleum and Natural Gas] Ministry for retailing, we are looking at the various concepts that can be implemented,” he said. 

The company, which celebrating diamond jubilee year, has set aside ₹400 crore to be spent over two or three years for retail outlets. CPCL, he said, would save on CST of ₹30 crore to ₹40 crore every month which was levied when a product was moved to other States. “We can save on that when we venture into this business,” Mr. Shankar added.

Published - June 03, 2025 09:26 pm IST