Chennai Petroleum Corporation (CPCL) plans to set up a 'resid upgradation project' with an investment of Rs.3,500 crore. The project proposal will be submitted to the company's Board of Directors for its approval by September 2006.

After getting approval, the project will enable CPCL to process more of heavier, sulphurous crudes. These crudes leave heavy residues at the bottom of the refinery and the resid plant will convert the residues into petrol and diesel.

The 'resid project' will raise the company's capacity to process high sulphur crudes to 95 per cent. At present only 70 per cent of CPCL's capacity can process sulphurous crudes. The project is expected to be operational by 2010.

The company through de-bottlenecking, is also planning to raise the capacity of its refinery unit from existing 9.5 million tpa to 11.2 million tpa The expansion project will entail an  investment of Rs.150 crore with completion scheduled by 2008.