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Business Standard
10 hours ago
- Automotive
- Business Standard
Chennai Petroleum to set up retail fuel outlets; commits Rs 400 cr capex
IndianOil Group company Chennai Petroleum Corporation Ltd coinciding with its Diamond Jubilee year has embarked on a journey to set up retail outlets to sell petrol and diesel, a top official said on Tuesday. The company, which has been producing fuel at its refineries located near the city, has earmarked Rs 400 crore as capital expansion towards this cause. "We are embarking on a journey to set up retail outlets. Long back about 20 years back, CPCL had one standalone outlet in Sriperumbudur. Now, we are again venturing into this strategic growth path. So this is one exciting journey we are taking now. We want to see that during this Diamond Jubilee year, we will be able to establish some diamond jubilee outlets that is a target we are working on," CPCL Managing Director H Shankar told reporters. Declining to elaborate on the number of outlets planned initially, he said during the Diamond Jubilee celebrations the company would be in a position to launch the first round of retail outlets. "Retail outlets will sell petrol and diesel. We got the approval from the Ministry (Ministry of Petroleum and Natural Gas) to set up the retail outlets. So, we are going to move in that direction," he said. Responding to a query, he said, "it is a startup for us (To establish a retail outlet). We just want to roll out during the Diamond Jubilee year, see how the market reacts. We have set aside a minimum capex (capital expenditure) for that about Rs 400 crore over a period of 2-3 years." "If the same excitement is reciprocated from the market, then the roll out of outlets will be much faster and bigger." he said. Shankar said the expansion of the retail outlets would be gradually expanded into other States based on the prevailing market conditions. "We want to spread slowly not that we will do only in Tamil Nadu, we want to go all over (India). We will go in a careful way. It is a journey where it all depends on the market conditions." According to Shankar, the company had initially set up its first retail outlet in Sriperumbudur near Chennai in 2002 but it was closed as the marketing of fuel products was given to the parent company IndianOil and it was decided that CPCL will be a standalone refinery company. Asked whether establishing CPCL owned retail outlets would eat into the revenues of IndianOil, he replied that there was enough scope for petrol and diesel market in India and fuel outlets by CPCL would be decided based on the 'market potential'. "So, whenever we advertise in the press, we have to see where we are going to set up what is the potential available. We have to see what are the sites available, what are the market potential and then only Letter of Intent will be given." "If there are already established players in and around, there is no point in setting up. So, we need to be very judicious about site selection also. That is what we are now working on," he said.
Time of India
10 hours ago
- Business
- Time of India
Chennai Petroleum to set up retail fuel outlets; commits ₹400 cr capex
IndianOil Group company Chennai Petroleum Corporation Ltd coinciding with its Diamond Jubilee year has embarked on a journey to set up retail outlets to sell petrol and diesel , a top official said on Tuesday. The company, which has been producing fuel at its refineries located near the city, has earmarked ₹400 crore as capital expansion towards this cause. "We are embarking on a journey to set up retail outlets. Long back about 20 years back, CPCL had one standalone outlet in Sriperumbudur. Now, we are again venturing into this strategic growth path. So this is one exciting journey we are taking now. We want to see that during this Diamond Jubilee year, we will be able to establish some diamond jubilee outlets that is a target we are working on," CPCL Managing Director H Shankar told reporters. Declining to elaborate on the number of outlets planned initially, he said during the Diamond Jubilee celebrations the company would be in a position to launch the first round of retail outlets. "Retail outlets will sell petrol and diesel. We got the approval from the Ministry (Ministry of Petroleum and Natural Gas) to set up the retail outlets. So, we are going to move in that direction," he said. Responding to a query, he said, "it is a startup for us (To establish a retail outlet). We just want to roll out during the Diamond Jubilee year, see how the market reacts. We have set aside a minimum capex ( capital expenditure ) for that about ₹400 crore over a period of 2-3 years." "If the same excitement is reciprocated from the market, then the roll out of outlets will be much faster and bigger." he said. Shankar said the expansion of the retail outlets would be gradually expanded into other States based on the prevailing market conditions. "We want to spread slowly not that we will do only in Tamil Nadu, we want to go all over (India). We will go in a careful way. It is a journey where it all depends on the market conditions." According to Shankar, the company had initially set up its first retail outlet in Sriperumbudur near Chennai in 2002 but it was closed as the marketing of fuel products was given to the parent company IndianOil and it was decided that CPCL will be a standalone refinery company. Asked whether establishing CPCL owned retail outlets would eat into the revenues of IndianOil, he replied that there was enough scope for petrol and diesel market in India and fuel outlets by CPCL would be decided based on the 'market potential'. "So, whenever we advertise in the press, we have to see where we are going to set up what is the potential available. We have to see what are the sites available, what are the market potential and then only Letter of Intent will be given." "If there are already established players in and around, there is no point in setting up. So, we need to be very judicious about site selection also. That is what we are now working on," he said. PTI
The Hindu
27-05-2025
- Business
- The Hindu
Chennai Petroleum Corporation gets govt nod for foray into retail marketing of petrol, diesel
Oil refiner Chennai Petroleum Corporation (CPCL) has received Government of India approval for a foray into retail marketing of petrol and diesel. Petroleum and Natural Gas Ministry conveyed the government's approval to the company to exercise retail marketing rights to market Motor Spirit (MS) and High Speed Diesel (HSD), CPCL informed stock exchange on Tuesday (May 27, 2025). Coming around the diamond jubilee celebrations of the Chennai-headquartered company, the retail licence paves way for CPCL's transformation from a standalone refiner to oil marketeer. A group company of the State-owned Indian Oil Corporation since 2002, CPCL has over the years enhanced capacity of its refinery in suburban Manali, near Chennai, to the existing 10.5 million tonne. It used to operate a smaller, 1 MT refinery in Nagapattinam that since has been dismantled to make way for a 9 million tonne refinery and petrochemicals project proposed as a joint venture between Indian Oil and CPCL. Prime Minister Narendra Modi laid the foundation for the refinery project in February 2021 and over time officials had told media about the progress of land acquisition. In March 2024, Indian Oil Board had approved a revision in cost of the Cauvery Basin Refinery and Petrochemicals project from ₹29,361 crore to ₹33,023 crore and a change in the capital structure of the JV to 75% for IOC and 25% for CPCL – from the earlier equal holding. CPCL (formerly Madras Refineries) would seek to capitalise on its brand identity as a major refiner on east coast and widely expected to initially consider setting up retail outlets for marketing petrol and diesel in the south India. When contacted, the company said there is little at this stage beyond the exchange filing to elaborate on the retailing foray. At present, the standalone refiner's products are marketed by parent IOC. After MRPL (Mangalore Refinery and Petrochemicals) got into fuel retailing, CPCL remains the only standalone refiner in the country. As per media reports, MRPL is eyeing 1,000 retail outlets and around 1 million tonnes of petrol and diesel sales by 2030. Fuel retailing will emerge as a stream of additional revenue for the Chennai-headquartered company though a lot depends on access to stocks after offtake by Indian Oil.
Time of India
28-04-2025
- Business
- Time of India
Dear govt, you can't burn your way out of a plastic crisis
CHENNAI: As part of the 2025-26 budget, the state govt announced two waste-to-energy ( WTE ) incineration plants in Kodungaiyur and Tambaram with a capacity of 21MW and 15-18MW electricity generation from solid waste. The WTE at Kodungaiyur dump yard is to be set up at an estimated life-cycle cost of Rs 3,450cr. At the same time, the govt launched a year-long plastic waste clean-up and recycling drive that began on Jan 25. While these solutions are projected to solve the growing solid waste problem, it ignores the elephant in the room — the fact that Chennai is the leader in plastic production and consumption in south India. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai Though the world is shifting towards renewables and electric vehicles, fossil fuel industries are banking on plastics for profits. The International Energy Agency projects that by 2050, plastics and petrochemicals will drive 50% of oil and 58% of gas demand growth. The Organization for Economic Cooperation and Development warns that plastic production could triple by 2060. Without curbing production, govts worldwide are left spending $32 billion annually on managing plastic waste. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play this game for 1 minute and see why everyone is addicted. Undo This pattern of global contradictory measures which just focus on the plastic issue as a waste management problem and not an upstream problem manifests in Tamil Nadu in two concrete projects. The first is the plan to set up a 243.78 acre polymer industrial park exclusively for housing plastic and allied industries in Tiruvallur district at `216cr. The second is the state-incentivised doubling of Chennai Petroleum Corporation Limited's (CPCL) capacity to 19.5 million metric tons per annum from the current 10.5 million metric tons per annum in Nagapattinam while pumping in thousands of crores of public money to set up WTEs. The govt is simultaneously encouraging industries that will increase pollution while investing huge public money to manage the environmental fallout. Thus, the state risks becoming a sacrifice zone for this unsustainable model of waste management. Tamil Nadu is in a dire situation. Its plastic waste generation is startling. As plastic production rises, so does municipal solid waste, with plastic remaining the hardest material to produced 7.82 lakh tonnes plastic waste in the 2022-23 financial year, nearly 50% higher than Delhi. Once established, together, the polymer industries park and Chennai Petroleum Corporation Ltd's expansion, will worsen the plastic crisis in the state. CPCL's existing 30,000 MT/year propylene plant enables production of about 3.4 billion plastic carry bags annually. With CPCL's capacity doubling to 19.5 MMTPA and the Polymer Park creating new demand for plastic feedstocks, this output will scale significantly. The proposed solutions are basically flawed as they are downstream. They focus only on managing plastic waste generated after use rather than regulating its feedstock production. WTE plants require constant plastic waste flows to remain operational, creating contrary economic incentives against plastic production reduction. The Meendum Manjapai (MM) cloth bag initiative shifts the responsibililty onto individuals while ignoring industrial-scale plastic production, enabled by state-subsidised projects such as CPCL's expansion and the Polymer Park. Without regulating feedstock production, individual efforts will have little impact, giving industries a free hand for surplus production. A committed action against plastic pollution regulating feedstock production along with individual-centric measures is needed. A recent investigation on a 10-tonne waste incinerator in Manali, Chennai, indicated that cadmium levels, a carcinogen, were 24 times higher than WHO standards apart from revealing that they were operating illegally for five years. Building two new WTE incinerators that will be 360 times bigger than the Manali incinerator will be catastrophic to Chennai's environment and climate. The health and environment is at risk of contamination as incinerators are known to emit harmful pollutants such as PM10, PM2.5, SOx, NOx, HCL, heavy metals, dioxins and furans. Also, the proposed WTE incinerators in Chennai will emit about 6,120 tonnes of CO2 per day which is equivalent to the emissions from a little more than 15 lakh passenger cars. Globally, the communities around WTEs have reported poor environment quality and poor health. A recent NewYork Times investigative article on the Delhi's Okhla WTE plant has found severe health impacts including congenital anomalies, miscarriages, respiratory illnesses, and cancer. To sustainably solve the plastic issue, the TN govt requires upstream interventions. First, the state must scrap its persistence in establishing the polymer industrial park in Thiruvallur despite facing opposition from local communities. Instead, it needs to invest in developing environmentally and people friendly alternative models. A legally binding Global Plastics Treaty, is currently being negotiated under the aegis of the UN, for addressing plastics pollution across its entire life-cycle. As an industrial leader in the country, TN should advocate for national plastic production caps which will reduce the amount of plastics that is manufactured in the country thereby addressing the plastic pollution effectively. Even the plastic waste management (PWM) rules have been diluted eight times in the last eight years to remove any ambition for the phasing out of problematic plastics and single-use plastics. The extended producer responsibility (EPR) guidelines of the PWM rules have instead legalised and incentivised the burning of all types of plastics via WTE incineration and co-processing in cement industries. Kerala has already shown that successful models exist to handle waste without need for WTEs. Kerala recently became a near 100% waste-free status as 1,021 local bodies meet key criteria. The choice facing TN requires political courage to confront the powerful fossil fuel lobby and acknowledge the bitter fact that plastic waste is generated in state- and corporate-owned petrochemical industries and not in household backyards. The ₹3,450cr earmarked for Kodungaiyur WTE plant in the 2025-26 budget could be redirected to seed a circular economy strengthening the livelihoods of people involved in recovery, recycle and reuse sectors. TN has a bright ecological future if it divests from plastics feedstock production. Contrastingly, if the state focuses on expanding plastic production on one hand and promoting false solutions such as WTE incineration will bring an unprecedented waste-o-calypse to Tamil Nadu. (The writers are associated with the Centre for Financial Accountability and work on impacts of plastics on the environment)
Time of India
25-04-2025
- Business
- Time of India
CPCL Q4 net profit falls 25% on lower refining margins
New Delhi: Chennai Petroleum Corporation Ltd on Friday reported a 25 per cent drop in its March quarter net profit as refining margins fell on softening global oil rates . Consolidated net profit was at ₹469.93 crore in January-March (fourth quarter of 2024-25 fiscal year) compared with ₹627.89 crore earnings in the same period of last financial year, according to a stock exchange filing by the company. Revenue from operations was almost flat at ₹20,580.65 crore. For the full fiscal (April 2024 to March 2025), CPCL's net profit plunged to ₹173.53 crore from ₹2,711.25 crore in 2023-24. CPCL said it earned USD 4.22 on turning every barrel of crude oil into fuel in FY25, down from USD 8.64 per barrel gross refining margin in the previous year. The firm, which is a subsidiary of state-owned Indian Oil Corporation (IOC), processed 2.974 million tonnes of crude oil in Q4, slightly lower than 3.087 million tonnes processed in January-March 2024. In full 2024-25 fiscal, crude oil processing at 10.454 million tonnes was lower than 11.642 million tonnes processed in the previous year.
