Page 54 - Plastics Nuews October 2017

BuSINESS NEWS

IOC board clears Rs 27,000 crore

refinery in Andhra Pradesh

ndian Oil Corp. (IOC) has said that it has recieved the
Ipermission from its board that has given approval to
setting up of a Rs27,460 crore refinery by its subsidiary,
Chennai Petroleum Corp. Ltd. The board of directors of
CPCL had in April this year recommended setting up a new
9 million tonnes a year refinery at an estimated cost of
Rs27,460 crore (with an accuracy of more than 30%). The

expansion was subject to the approval of board of IOC,
the holding company of CPCL. “The board of directors of
IOC at the meeting held on 22 September accorded in-
principle approval for setting up a new 9 million tonnes
per annum refinery at Cauvery basin, Nagapattinam at
an estimated cost of Rs27,460 crore and for carrying out
pre-project activities,” IOC said in a regulatory filing.
The final approval of the project would be obtained after
preparation of detailed feasibility report of the project.
The planned refinery will be CPCL’s third refinery. It
currently operates a 10.5 million tonnes Manali refinery
in Tamil Nadu.
It also has a smaller 1 million tonnes Nagapattinam
refinery. CPCL, formerly known as Madras Refineries
Ltd, was formed as a joint venture in 1965 between the
Government of India, AMOCO and National Iranian Oil
Co (NIOC) having a shareholding in the ratio of 74%, 13%
and 13%, respectively. In 1985, AMOCO was disinvested.
After this, government held 84.62% and NIOC 15.38%.
Government later disinvested 16.92% of the paid-up
capital. The company was listed in 1994. IOC acquired
government stake in 2000-01. IOC currently holds 51.89%
stake in CPCL while NIOC holds 15.40%.

Plastics News | Octob er 2017 54