Chennai, Sep 22 (IANS): Chennai Petroleum Corporation Ltd (CPCL) on Wednesday said that work has begun of the Rs 31,580 crore, 9 million metric ton per annum (MMTPA) grassroot refinery at Nagapattinam in Tamil Nadu.

According to CPCL, the refinery is being installed along with the IOCL and is expected to be completed in 45 months time.

An official told IANS that CPCL and IOCL will share the 50 per cent stake equally and balance will be held by strategic/financial investors.

The work on the project began after Chief Minister M.K.Stalin handed over the Government Order for acquisition of 606 acre of land parcel to IOCL Chairman S.M. Vaidya in the presence of CPCL Managing Director Arvind Kumar on September 3.

The CPCL said the company awarded contracts amounting to Rs 1,538 crore to project management consultants Engineers India Ltd (EIL), McDermott, and Tata Consulting Engineers (TCE).

Last week, discussions on engineering began with all the three consultants at CPCL headquarters here which was attended by the top management team of Engineers India led by CMD Vartika Shukla and top officials of McDermott and TCE.

CPCL's Kumar also interacted with the Karaikal Port officials and took stock of the existing infrastructure and its applicability for evacuation of products after commissioning of the new project.

According to CPCL, procurement and engineering activities for the project have already commenced and site activities will now gain momentum.

The project will act as a catalyst for development of downstream petrochemical and ancillary industries.