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In a move aimed at mitigating the impact of soaring project costs, the Indian Oil Corporation (IOC) announced its decision to bolster its stake in the joint venture overseeing the construction of a 9 million tonnes refinery in Chennai. Originally slated to hold a 25 percent stake, IOC, along with its subsidiary Chennai Petroleum Corporation Ltd (CPCL), will now command a 75 percent share in the project, following a notable increase in project expenses. The decision comes after IOC revealed that the project's cost had surged by over 12 percent, necessitating a revision in the capital structure. In a filing with the stock exchange, IOC disclosed that the project's estimated cost had escalated from Rs 293.61 billion to Rs 330.23 billion, reflecting a substantial increase of Rs 36.62 billion. The Board has also accorded approval for revision in the capital structure of the joint venture with 75 percent equity from IndianOil and 25 percent equity from CPCL, IOC stated, while refraining from providing specific reasons for the cost escalation. The refinery project, originally envisaged to be executed at an estimated cost of Rs 293.61 billion, aims to cater to the burgeoning demand for petroleum products in southern India. It was greenlit by IOC's board on January 29, 2021, for implementation at the Cauvery Basin in Nagapattinam, Tamil Nadu. Additionally, the formation of a joint venture between IOC and CPCL, with a 50 percent equity holding each, was sanctioned to facilitate the project. Subsequently, the joint venture entity named 'Cauvery Basin Refinery and Petrochemicals Ltd' (CBRPL) was established on January 6, 2023, with plans to complete the unit within 48 months. The decision to increase IOC's stake comes amid the backdrop of National Iranian Oil Co (NIOC) expressing interest in the project. Although NIOC holds a 15.4 percent stake in CPCL, it was thwarted from participating in the expansion project due to US sanctions on Iran. IOC, which holds a majority 51.89 percent stake in CPCL, opted to elevate its participation in the joint venture to offset potential risks associated with fresh investments from NIOC amid the prevailing sanctions. The Chennai refinery project, once operational, is poised to significantly augment India's refining capacity while catering to the burgeoning energy needs of the southern region.