State owned oil refiner Indian Oil Corporation has said it has commenced land acquisition in Nagapattinam region for the proposed nine million tonne per year refinery.
Indian Oil and its refining subsidiary CPCL will own 25 per cent each in a Special Purpose Vehicle (SPV) which will set up the Rs 31,500 crore refinery, while the rest will be held by strategic or financial investors.
The project needs regulatory approvals and nod from Niti Aayog, Indian Oil said. CPCL already owns 650 acres in the area as it already has a one million tonne refinery which is operational. “We need another 600 acres and the land acquisition process is underway,” said Rajeev Ailawdi, MD of CPCL.
This project shall generate about 50 lakh man-days during the execution phase. The new refinery will produce petrol, diesel and Polypropylene. The integrated complex will house a desalination plant and also a 150 MW captive power plant which will be fired using natural gas as feedstock.
The Prime Minister will operationalise the Ramanathapuram – Thoothukudi natural gas pipeline and Gasoline desulfurization unit at CPCL on Wednesday and also lay the foundation stone for the refinery. The project has received environmental clearance and is awaiting a Consent to Establish (CTE) from the Tamil Nadu state government. Fiscal incentives for the mega project has also been awarded the state government.
