The Board of Directors of Indian Oil Corporation Limited, the holding company and approving authority has accorded approval to the proposal of CPCL for initiating the winding up process in respect of National Aromatics and Petrochemicals Corporation Limited (AROCHEM), one of the joint ventures between CPCL and Southern Petrochemical Industries Corporation Ltd (SPIC).

 

Chennai Petroleum Corporation Ltd (CPCL) and Southern Petrochemicals Industries Corporation Ltd (SPIC) had entered into an MoU for forming a joint venture company viz., National Aromatics and Petrochemicals Corporation Ltd (AROCHEM) for manufacture of PTA/ PFY products at Manali, Chennai. AROCHEM was incorporated on 10.05.1989 to execute the project. The project could not take-off due to various issues between the promoters.

 

The proposal for winding up of AROCHEM was earlier recommended by the Board of CPCL to the Board of Indian Oil Corporation Ltd (IOCL), the holding company, for approval, at its meeting held on 18th January, 2020.