Product over-supply hits proposed Cuddalore refinery

Vol 5, PW 13 (15 Aug 01) News in Brief

Fears of a glut in the supply of oil products in southern India has forced Indian Oil to abort plans to invest in a proposed 6m t/y refinery at Cuddalore.

We learn a 31st July board meeting of Indian Oil abandoned plans to invest in the refinery, promoted jointly by Nagarjuna Oil Corporation (51%) and the Tamil Nadu Industrial Development Corporation (49%), citing the following reasons: Surplus of products from 2003-04 onwards, date when Cuddalore refinery is expected to be commissioned Government disinvestment in nearby Chennai Petroleum for IOC means products are available in Chennai region Product availability will increase after expansion of Chennai Petroleum by 3m t/y to 9.5m t/y in 2003-04