NEW DELHI: Despite the United States’ economic sanctions on Iran, India’s largest oil marketing company Indian Oil Corporation (IOCL) is hopeful that the gulf nation will participate in the expansion of Chennai Petroleum Corporation’s (CPCL) refinery in Nagapattinam, Tamil Nadu. CPCL is a subsidiary of IOCL.
IOCL chairman Sanjiv Singh said on Wednesday that Iran is keen to invest in the planned `35,700-crore expansion of the refinery. “They have said they want to participate and I think they should be able to invest,” he said.
IndianOil is currently going ahead with plans to pull down the 1 million tonne per year Nagapattinam refinery of CPCL and build a brand new 9 million tonne per annum unit in its place over the next 5-6 years. The expansion was to originally cost to `27,460 crore but is now estimated to cost around `35,698 crore.
While IOCL holds 51.89 per cent of the equity in the company, 15.4 per cent is held by National Iranian Oil Company and Naftiran Intertrade, the Swiss subsidiary of NIOC, holds another 15.4 per cent.