Indian Oil Corporation Plans Stake Increase in Chennai Refinery Project

01 Apr 2024 CW Team

The decision comes after IOC revealed that the project's cost had surged by over 12 percent, necessitating a revision in the capital structure. In a filing with the stock exchange, IOC disclosed that the project's estimated cost had escalated from Rs 293.61 billion to Rs 330.23 billion, reflecting a substantial increase of Rs 36.62 billion.

"The Board has also accorded approval for revision in the capital structure of the joint venture with 75 percent equity from IndianOil and 25 percent equity from CPCL," IOC stated, while refraining from providing specific reasons for the cost escalation.

The refinery project, originally envisaged to be executed at an estimated cost of Rs 293.61 billion, aims to cater to the burgeoning demand for petroleum products in southern India. It was greenlit by IOC's board on January 29, 2021, for implementation at the Cauvery Basin in Nagapattinam, Tamil Nadu.

Additionally, the formation of a joint venture between IOC and CPCL, with a 50 percent equity holding each, was sanctioned to facilitate the project. Subsequently, the joint venture entity named 'Cauvery Basin Refinery and Petrochemicals Ltd' (CBRPL) was established on January 6, 2023, with plans to complete the unit within 48 months.

The decision to increase IOC's stake comes amid the backdrop of National Iranian Oil Co (NIOC) expressing interest in the project. Although NIOC holds a 15.4 percent stake in CPCL, it was thwarted from participating in the expansion project due to US sanctions on Iran.

IOC, which holds a majority 51.89 percent stake in CPCL, opted to elevate its participation in the joint venture to offset potential risks associated with fresh investments from NIOC amid the prevailing sanctions.

The Chennai refinery project, once operational, is poised to significantly augment India's refining capacity while catering to the burgeoning energy needs of the southern region.

In a move aimed at mitigating the impact of soaring project costs, the Indian Oil Corporation (IOC) announced its decision to bolster its stake in the joint venture overseeing the construction of a 9 million tonnes refinery in Chennai. Originally slated to hold a 25 percent stake, IOC, along with its subsidiary Chennai Petroleum Corporation Ltd (CPCL), will now command a 75 percent share in the project, following a notable increase in project expenses. The decision comes after IOC revealed that the project's cost had surged by over 12 percent, necessitating a revision in the capital structure. In a filing with the stock exchange, IOC disclosed that the project's estimated cost had escalated from Rs 293.61 billion to Rs 330.23 billion, reflecting a substantial increase of Rs 36.62 billion. The Board has also accorded approval for revision in the capital structure of the joint venture with 75 percent equity from IndianOil and 25 percent equity from CPCL, IOC stated, while refraining from providing specific reasons for the cost escalation. The refinery project, originally envisaged to be executed at an estimated cost of Rs 293.61 billion, aims to cater to the burgeoning demand for petroleum products in southern India. It was greenlit by IOC's board on January 29, 2021, for implementation at the Cauvery Basin in Nagapattinam, Tamil Nadu. Additionally, the formation of a joint venture between IOC and CPCL, with a 50 percent equity holding each, was sanctioned to facilitate the project. Subsequently, the joint venture entity named 'Cauvery Basin Refinery and Petrochemicals Ltd' (CBRPL) was established on January 6, 2023, with plans to complete the unit within 48 months. The decision to increase IOC's stake comes amid the backdrop of National Iranian Oil Co (NIOC) expressing interest in the project. Although NIOC holds a 15.4 percent stake in CPCL, it was thwarted from participating in the expansion project due to US sanctions on Iran. IOC, which holds a majority 51.89 percent stake in CPCL, opted to elevate its participation in the joint venture to offset potential risks associated with fresh investments from NIOC amid the prevailing sanctions. The Chennai refinery project, once operational, is poised to significantly augment India's refining capacity while catering to the burgeoning energy needs of the southern region.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..