CPCL planning a three-fold capacity expansion of its Manali refinery

Chennai: Chennai Petroleum Corp, a subsidiary of state-owned Indian Oil, is planning a three-fold capacity expansion at its 3-mtpa refinery in Manali with an investment of Rs 9,000-Rs 10,000 crore, the expansion would be funded through the refining margins over the next five years.

The company is planning to add 6 million tonne capacity to the existing 3 mtpa at the Manali refinery within four to five years. It is also said the Manali facility currently processes 70% sour crude, and the firm has plans to gradually raise it to 85% by 2013/14.

The company is mulling expansion of its existing refinery, as it company might have to put on hold plans for a new refinery in Ennore because of environment issues. The company could not get environmental clearance for the greenfield refinery at Ennore in Tamil Nadu because of the presence of a wildlife sanctuary. The alternate land offered by the state government was not feasible due to distance.