Chennai Petroleum Corporation Limited revamps ₹45,000-crore Cauvery Basin project in Nagapattinam; IOC to hold 75% stake.

Chennai Petroleum Corporation Limited has reworked its proposed ₹45,000-crore Cauvery Basin Refinery and Petrochemicals Ltd (CBRL) project in Nagapattinam, shifting its focus from a conventional refinery to a petrochemical complex after reassessing the project’s financial viability.

CPCL Managing Director H Shankar said the project structure has also been revised. While the original plan envisaged CPCL and Indian Oil Corporation holding 25 per cent stake each, with the remaining 50 per cent to be brought in by external investors, the venture is now structured with IOC holding a 75 per cent stake and CPCL retaining 25 per cent.

Shankar said CPCL and its parent IOC revisited the configuration after the initially proposed refinery-cum-petrochemical complex faced challenges related to internal rate of return (IRR), prompting a strategic shift towards a petrochemical-focused project.