MRL shareholders approve investment in Petronet CTM

By Our Corporate Reporter

CHENNAI, MARCH 29. The shareholders of Madras Refineries (MRL) have approved investment upto a maximum of Rs. 60 crores in the equity of Petronet CTM at an extraordinary meeting held here today.

Petronet CTM is a joint venture promoted by Petronet India and Indian Oil Corporation for construction and operation of a product pipeline from Chennai to Madurai via Tiruchi for transportation of petroleum products. The cost of the project is estimated at Rs. 600 crores with a debt equity ratio of 3:1.

It has been stated that MRL's participation in the project would greatly help the company in speedy and safe evacuation of its products to its marketing zones.

The shareholders have also approved changing the name of the company to Chennai Petroleum Corporation Limited (CPCL).

The company is also proposing to enter the energy sector by setting up a 500 MW power project.

MRL has grown manifold from the date of inception. The turnover of the company has increased from Rs. 27 crores in the first year of operation to the present level of Rs. 3,747 crores and the crude throughput capacity has increased from 2.5 million tonnes to 7 million tonnes.

The company has become multi-locational with two refineries, one at Manali and another at Panangudi in Tamil Nadu.

The company has also diversified its activities from mere refining of crude oil to manufacturing and marketing of petroleum and petrochemical feedstocks.

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