OIL & GAS

Indian Oil announces new greenfield refinery at Nagapattinam in Tamil Nadu

State-run oil refiner Indian Oil’s board of directors on Friday approved setting up a new refinery in Nagapattinam in Tamil Nadu, chairman and managing director SM Vaidya said at a press conference.

He said the refinery will have an annual refining capacity of 9 million metric tonnes and an investment of ₹31,500 crore. A joint venture between Indian Oil and its subsidiary Chennai Petroleum Corporation, the project will be completed within 48 months from the dates of investment approval and statutory clearances, Vaidya added.

The project will source 80 per cent of materials and services indigenously, he said. The refinery will produce diesel and petrol meeting Bharat Stage VI standards, and 6 per cent of the crude processed will go into making petrochemicals. “We have kept margins to increase petrochemical production,” he added.

Chennai Petroleum holds over six acres of land, and another 6.58 acres of land is in advanced stages of acquisition, Vaidya said, adding that the firm expects to obtain the land rights by March. Product evacuation from the refinery will take place via two existing pipelines in the region and jetties, utilising the port-based location of the refinery.

Vaidya indicated that funding for the project will come mainly from debt. “Our debt-to-equity ratio is quite healthy at 0.6621.

Source
the hindu businessline
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