India’s Chennai Petroleum Corp forms joint venture for $4 billion refinery

BENGALURU: Chennai Petroleum Corp Ltd said on Tuesday it has formed a joint venture with its parent companyIndian Oil Corpand others to build a 9 MMTPA refinery at a cost of 315.80 billion rupees ($3.95 billion) in southernTamil Nadustate.

CPCL, in which National Iranian Oil Company has about 15 per cent stake, was operating a small refinery at the Cauvery Basin at Nagapattinam, where the new plant will be located.

The new refinery will come up after dismantling the existing 1 million metric ton per annum (MMTPA) refinery, according to CPCL’s website, and will produce liquefied petroleum gas, BS VI quality gasoline, diesel and aviation turbine fuel.

CPCL will hold 25 per cent stake in the new refinery for an investment of 25.70 billion rupees, whileIOCand other seed equity investors includingAxis Bank, HDFC

Life Insurance Co, ICICI Bank, ICICI Prudential Life Insurance Co and SBI Life Insurance Co, will hold the rest.