Indian Oil, Chennai Petroleum Ink JV Agreement For Rs 31,580 Crore Refinery And Petrochemicals Project In Tamil Nadu

Indian Oil Corporation Limited (IOCL), Chennai Petroleum Corporation (CPCL), and seed equity partners have signed a joint venture agreement for the upcoming grassroot 9 million metric tonne per annum (MMTPA) refinery and petrochemicals projects at Nagapattinam in Tamil Nadu.

The project is likely to see an investment of over Rs 31,500 crore.

Indian Oil and CPCL will together hold 50 per cent of equity stake (25 per cent each) in the Joint Venture Company (JVC) and the balance 50 per cent stake would be held by financial/strategic Investors, to be identified at a later stage, the company said in a statement.

"The Rs 31,580 Crore refinery complex will cater to the petroleum products demand of the Southern region of India and provide impetus for economic development of the region," the company said.

The project would resuit in substantial socio-economic benefit to the country ingeneral, and more specifically to the state of Tamil Nadu, it added.