Navratna status gives CPCL more autonomy for faster expansion, new investments, says MD

H Shankar, Managing Director, CPCL

Chennai Petroleum Corporation Ltd (CPCL) plans to leverage its newly acquired Navratna status to accelerate capacity expansion, diversify into high-value petroleum products, and pursue joint ventures (JV). The enhanced autonomy will allow its board to take major investment decisions without seeking further approval from parent Indian Oil Corporation (IOCL), CPCL MD H Shankar told businessline in an interaction.

The Navratna status marks a significant milestone for the company, making CPCL the first single-location public sector enterprise from Tamil Nadu to receive the recognition, Shankar said.

Neyveli Lignite Corporation, also a Navratna company, has operations in Tamil Nadu and also in other States.

Biggest advantage

“The biggest advantage of being a Navratna is the autonomy it gives the company. It enables faster decision-making and places greater responsibility on the CPCL board to evaluate and approve projects,” Shankar said.

Earlier, CPCL had to obtain approval from IOCL’s board for capital expenditure projects exceeding ₹500 crore. Following the grant of Navratna status, there is no upper limit on capital expenditure for independently funded projects approved by the company’s board. “There is no cap on investment for independent projects. The board will take decisions after evaluating the company’s financial strength, internal rate of return, project viability and gestation period,” Shankar said.

Shankar said the company will initiate discussions with potential downstream industries – to explore partnerships for producing value-added products. “We have the feedstock, financial strength and now greater operational flexibility. We are evaluating opportunities where these strengths can be combined with the technical expertise of downstream companies,” he said.

The enhanced powers also provide greater flexibility to form joint ventures. Under the Navratna guidelines, CPCL can approve equity investments of up to 15 per cent of its net worth in a single joint venture or wholly owned subsidiary, subject to a ceiling of ₹1,000 crore. The overall investment in such ventures is capped at 30 per cent of the company’s net worth, he said.

Next phase

CPCL is simultaneously preparing its next phase of growth. It has appointed Engineers India Ltd to undertake a feasibility study for expanding the capacity of its Manali refinery, with the report expected to be submitted over the next two to three months.

On the retail front, CPCL has already secured board approval to invest around ₹400 crore to establish 300 fuel retail outlets across India under its Sooper brand. Shankar said the company would review the performance of the first phase before seeking approval for further expansion.

Published on July 2, 2026