Chennai Petroleum and IOC may opt for a third partner for petrochemical project

Chennai: Chennai Petroleum Corporation Limited and Indian Oil Corporation are open to having a strategic investor as their partner for their 15 million tonne per annum (mtpa) grass root greenfield refinery cum petrochemical project planned at Ennore, Chennai.

According to Chennai Petroleum's managing director KK Acharya, "We have selected Engineers India Limited to study the process configuration and pre-feasibility studies. Their report is expected this June."

While Chennai Petroleum is a refinery company, it decided to add a petrochemical project to make the project commercially viable. The whole project would involve an outlay of Rs 35,000 crore.

According to director, finance, NC Sridharan, the investment requirement for the project would peak only during fiscal 2008-09. "We have ample time to decide on the strategic investor. Projects like this would have a debt: equity ratio of 2:1." Similarly, it has not been decided whether the project should be promoted under a new joint venture company or under Chennai Petroleum.

Meanwhile the company has asked the Tamil Nadu government for 3000 acres land at Ennore.