Cauvery Basin Refinery.

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The future Project.

CPCL’s second refinery is located at Cauvery Basin at Nagapattinam. The initial unit was set up with a capacity of 0.5 MMTPA in 1993 and later revamped to 1.0 MMTPA.

Company proposes to set up a grass root refinery of 9 MMTPA capacity on Joint venture basis at the same location, after dismantling the existing refinery. The Detailed Feasibility Report (DFR) for the new refinery project has been completed. The refinery will produce LPG, BS VI quality gasoline & Diesel and Aviation Turbine Fuel (ATF). The project also includes a Polypropylene unit as part of petrochemical integration, with potential to further increase production of petrochemicals in future. Single Point Mooring (SPM) & Desalination plant are envisaged for crude import and refinery water requirement respectively.

The project adopts latest indigenous technologies for main process units like Crude distillation unit, INDMAX Unit and Octamax Unit.

The Company has signed a MOU with the Government of Tamil Nadu for availing structured package of incentives for the project.

IOCL board has accorded approval for implementation of the project at CBR Nagapattinam through a Joint Venture, with IOCL and CPCL together holding 50% stake and balance 50% to be held by financial/strategic/public investors.

Environmental clearance for the project has been granted by MoEF&CC. Consent to Establish has also been received from TNPCB.

The refinery complex will cater to the demands of the Southern region and provide impetus for economic development of the region. The project will be an opportunity for highly industrious and skilled people to provide services for about 130 million man hours during the execution phase.

The project would result in substantial socio economic benefit to the country in general, and more specifically to the state.

Significant developments are as under:

· Floated major tenders like DCU LSTK, BOO- Desalination and Gas Turbine / HRSG Packages .

· Floated tender for long lead items like CDU/VDU column, Desalter, Vacuum Ejector, Compressors Package, Reactors package.

· M/s. KPMG is engaged as the Owner’s Project Management Consultant (OPMC) to act as an extended arm of the owner providing support in Project Monitoring & Control, Value assurance, Value enhancement etc., for meeting the overall project objectives with respect to Schedule, Cost and also adhering to the desired Quality, Safety & Environmental standards of the project.