The Chennai Petroleum Corporation (CPCL) refinery at Manali processed 11.71 million tonnes of crude oil in 2025-26, about 112% of its rated 10.5 million tonnes a year, according to the company’s annual results reported in April 2026. It is the main source of petrol, diesel, LPG and aviation fuel for Chennai and much of north Tamil Nadu.
It is also a neighbour that north Chennai residents in Manali, Mathur and Tiruvottiyur know well. Here is what the refinery is, who owns it, what it makes and where its long-delayed second refinery at Nagapattinam stands.
From Madras Refineries to IndianOil subsidiary
According to IndianOil’s profile of its subsidiary, CPCL began in 1965 as Madras Refineries Ltd, a joint venture of the Government of India, the US oil company AMOCO and the National Iranian Oil Company, set up to build a refinery at Manali. AMOCO sold its stake to the government in 1985. The government later transferred its holding to IndianOil, and CPCL became an IndianOil subsidiary in 2001.
The Manali refinery today
- Capacity: 10.5 million metric tonnes per annum (MMTPA), per the Petroleum Ministry.
- Complexity: a Nelson complexity index of 9.71, which IndianOil says makes it one of India’s most complex refineries. A higher index means it can turn more of each barrel into high-value products.
- Products: LPG, petrol, kerosene, aviation turbine fuel, diesel, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane and petroleum coke, plus feedstock for downstream petrochemical plants in the Manali industrial area.
- Wax and propylene: a 30,000-tonne-a-year paraffin wax plant supplies candle, match and waterproofing makers, many of them small firms. A propylene plant commissioned in 1988 was expanded to 30,000 tonnes a year in 2004.
- Water: the refinery runs a 5.8 MGD seawater desalination plant and a plant that treats 5 MGD of Chennai sewage for reuse, so it draws less on city drinking water.
The plant has a long record of running close to full. The Petroleum Ministry’s profile notes crude capacity utilisation of 96.8% in 2019-20, when CPCL also spent ₹961 crore on capital projects, including a diesel hydrotreater revamp and facilities to use regasified LNG. IndianOil’s profile adds that the refinery runs its own wind farm and holds ISO 9001, ISO 14001 and OHSAS 18001 certification.
The 2025-26 numbers
| Measure | 2024-25 | 2025-26 |
|---|---|---|
| Crude processed | 10.45 million tonnes | 11.71 million tonnes |
| Revenue from operations | ₹71,050 crore | ₹78,611 crore |
| Gross refining margin | US$4.22 a barrel | US$9.28 a barrel |
| Standalone net profit | not given | ₹3,062 crore |
The gross refining margin is what the refinery earns per barrel after paying for crude. It more than doubled in 2025-26, which explains most of the profit jump.
Nagapattinam: the second refinery
CPCL’s smaller Cauvery Basin Refinery at Nagapattinam was commissioned in 1993 to process crude from nearby ONGC fields. It was shut from 1 April 2019 because it could not meet fuel quality standards. In its place, a new 9 MMTPA refinery is planned on the same site.
- The project company, Cauvery Basin Refinery and Petrochemicals Ltd, was incorporated on 6 January 2023, according to CPCL’s March 2024 stock exchange disclosure.
- That disclosure raised the cost from ₹29,361 crore to ₹33,023 crore and changed the equity split to IndianOil 75%, CPCL 25%.
- In June 2025 CPCL’s managing director said the cost had been reworked to about ₹36,400 crore, that roughly 1,300 acres had been acquired, and that the configuration was being revised before fresh approvals, PTI reported.
The plan has changed shape over time. In June 2025 the managing director said the government gave final approval for a new Nagapattinam refinery in 2021, land acquisition followed in 2023, and the delay of three to four years was why the cost had to be reworked. The original design had only a polypropylene unit; CPCL said it plans to add more petrochemical capacity in a later second phase. The old unit had processed crude from ONGC’s Cauvery fields as well as Ravva and KG-D6 crude, according to IndianOil.
No completion date has been announced in the sources checked.
If you live near the refinery
Air, odour or effluent complaints about any industry in the Manali belt go to the Tamil Nadu Pollution Control Board’s district office. Keep the date, time and location of each incident. For emergencies involving fire or a gas leak, call 101 or 112.
Quick answers
What is the capacity of the Manali refinery?
10.5 million tonnes a year. In 2025-26 it processed 11.71 million tonnes.
Who owns CPCL?
It is a subsidiary of IndianOil since 2001. It began in 1965 as Madras Refineries Ltd.
Is the Nagapattinam refinery running?
The old 1993 unit closed in April 2019. A new 9 MMTPA refinery is planned but is still awaiting revised approvals.
What does CPCL make besides fuel?
Lube base stocks, paraffin wax, propylene, hexane, bitumen and petrochemical feedstocks.
Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.
Sources
- Chennai Petroleum Corporation Limited (Indian Oil Corporation)
- CPCL refining profile (Ministry of Petroleum and Natural Gas)
- Regulation 30 disclosure: revised project cost of CBRPL, 29 March 2024 (CPCL)
- CPCL reports financial and operational performance for Q4 and FY 2025-26 (The Machine Maker)
- CPCL seeks govt nod for Cauvery Basin Refinery project in TN (Outlook Business / PTI)
