Chennai Petroleum Corporation (CPCL), Indian Oil Corporation Limited (IOCL), and seed equity partners have signed a joint venture (JV) agreement for thé upcoming grassroot 9 MMTPA refinery and petrochemicals project at Nagapattinam in Tamilnadu.

 

The joint venture agreement was signed In the presence of S. M. Vaidya, Chairman, IOCL; Arvind Kumar, Managing Director, CPCL; V. Satish Kumar, Director (Marketing); Sukla Mistry, Director (Refineries), IOCL; Rajeev Ailawadi, Director (Finance), CPCL; and senior officials of CPCL and [OCL. 

 

The Joint Venture agreement was signed by H. Shankar, Director (Technical), CPCL and Rajiv Kacker, Executive Director (Projects), RHQ, IOCL in New Delhi on 23rd November, 2022. Representatives from the other Seed Equity Partners including Axis Bank, ICICI Bank, SBI CAPS the financial advisors, were also present on the occasion.

 

indianOil and CPCL will together hold 50% of equity stake (25% each) in the joint venture company (JVC) and the balance 50% stake would be held by financial/strategic Investors, to be - identified at a later stage. Pending onboarding of the financial/strategic investor, the JVC is being incorporated with the two promoters, IndianOil and CPCL.

 

The Rs. 31,580 crore refinery complex will cater to the petroleum products demand of the southern region of India and provide impetus for economic development of the region. The project would result in substantial socio-economic benefits to the country in general, and more specifically to the state of Tamilnadu.