Chennai Petroleum and IOC sign joint venture deal of Rs 31,580 crore

25 Nov 2022 , 07:53 AM

A joint venture agreement has been signed by Chennai Petroleum Corporation (CPCL), Indian Oil Corporation Limited (IOCL), and seed equity investors for the future 9 million tonnes per annum (MTPA) refinery and petrochemicals project at Nagapattinam in Tamilnadu. An estimated Rs 31,580 crore would be spent on the project.

According to a statement from the company, IndianOil and CPCL will each own 25% of the equity investment in the joint venture company (JVC), making up 50% of the total equity stake. The remaining 50% of the stock will be held by financial and strategic investors,

who will be named later. The two promoters, IndianOil and CPCL, are forming the JVC while waiting for the financial/strategic investor to join.

The refinery complex, which will cost Rs 31,580 crore, will meet the demand for petroleum products in southern India and help the area’s economy grow. It continued that the project would have a significant positive socioeconomic impact on both the nation as a whole and, more specifically, the State of Tamilnadu.

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