Big Move: IOC & CPCL Reshape ₹45k-Cr Cauvery Basin Project

Chennai Petroleum Corporation Limited has revised its proposed ₹45,000-crore Cauvery Basin Refinery and Petrochemicals Ltd project in Nagapattinam, transforming it from a conventional refinery venture into a petrochemical-focused complex after reassessing the project’s financial viability.

According to CPCL Managing Director H Shankar, the ownership structure has also been reworked. Under the earlier plan, CPCL and Indian Oil Corporation were each expected to hold 25 per cent equity, while external investors would own the remaining 50 per cent. In the revised structure, IOC will hold a 75 per cent stake, with CPCL retaining the remaining 25 per cent.

Shankar said CPCL and IOC revisited the project configuration after the originally proposed refinery-cum-petrochemical complex faced concerns over internal rate of return (IRR), leading the companies to strategically pivot toward a petrochemical-centric development.

News by Rahul Yelligetti.