New Delhi : Iran is keen to invest in the Rs 30,000 crore expansion of Chennai refinery but the fate of banking channels to route such investment is uncertain in view of US sanctions against the Persian Gulf nation, IOC Chairman Sanjiv Singh said.
IOC plans to pull down the 1 million tonnes per year Nagapattinam refinery of its subsidiary, Chennai Petroleum Corp Ltd (CPCL) and build a brand new 9 MTPA unit in next five-six years. National Iranian Oil Co (NIOC), which holds 15.4 per cent stake in CPCL, is keen to participate in the expansion project, Singh told reporters here.
“They are open to investment but whether these channels (for investment) will be available post-sanctions is something we don’t know,” he said. US sanctions against Iran will come into effect from November 4 and will block payment channels and even paying in US dollar or euros for crude oil that India imports from the Persian Gulf nation would not be possible. Indian Oil Corporation (IOC) holds 51.89 per cent stake in CPCL. Singh said the expansion was to originally cost Rs 27,460 crore but is now estimated to cost anything between Rs 25,000 crore and Rs 30,000 crore.
CPCL, formerly known as Madras Refineries Ltd, was formed as a joint venture in 1965 between the Government of India, AMOCO and NIOC having a shareholding in the ratio of 74 per cent, 13 per cent and 13 per cent then.
