Chennai Petroleum Corporation Limited (CPCL) is advancing plans for its ambitious Cauvery basin refinery project in Nagapattinam, Tamil Nadu, and has formally sought renewed government approval for the ₹36,400 crore venture.
From Legacy Shutdown to New-Scale Vision
They plan the new refinery with a nine million tons per annum (MTPA) capacity, substantially upgrading the 0.5 MTPA facility that operated in Nagapattinam since 1992 but shut down in 2019 due to stagnant output. According to CPCL Managing Director H Shankar, the earlier concept always included future expansion, and the Centre had granted final approval for the current project plan in 2021.
Land Acquisition and Project Planning Underway
CPCL has already acquired around 1,300 acres for the proposed facility. Land acquisition began in 2023, setting the groundwork for the large-scale infrastructure build-out.
Cost and Ownership Structure Revised
Originally estimated at ₹29,361 crore, the project cost was revised to ₹33,023 crore in March 2024 by Indian Oil Corporation (IOCL), CPCL’s parent company. The cost now stands at ₹36,400 crore as per the latest submission for approval. In a notable shift, IOCL will now hold a 75% stake, while CPCL retains 25%, replacing the earlier joint venture structure that included a third-party investor. This revised structure reflects a more streamlined internal investment model.
Configuration Under Evaluation
Before re-submitting the project for final approvals, CPCL is evaluating new refinery configuration styles to optimize capacity and efficiency. The move aligns with evolving technical and economic parameters in the downstream energy sector.
A Step Closer to Regional Energy Security
The Cauvery basin refinery will boost regional energy infrastructure, reduce import dependency, and generate employment in Tamil Nadu. According to projectstoday.com, with regulatory clearance, CPCL expects to move swiftly into the implementation phase. This will reinforce India’s refining capacity expansion goals.
