Chennai Petroleum Corporation Ltd (CPCL) plans to foray into the petrochemical sector. With this end in view, CPCL has assigned Engineers India Ltd (EIL) the task to conduct research studies on process configuration and pre-feasibility for establishing a 15 million tons refinery and petrochemical unit at Ennore. The petrochemical project has been added to the project, to increase its economical viability and also to procure better proceeds. The project is still in its development stage and awaits approval. The study reports by EIlL are expected to be submitted by June 2008, and the project is estimated to commence in 2010.
As a step closer to achieve this, the company has urged the Tamil Nadu Government to allocate 3,000 acres for setting up the proposed project. An investment outlay of Rs 35,000-40,000 crore is estimated for the project, making it imperative for the company to seek partners. CPCL plans to collaborate with Indian Oil Corporation (IOC). CPCL also plans to establish a propylene recovery unit at Manali worth around Rs 300 crore.