| Date: |
03-02-2015 |
| Subject: |
Indian Oil to Invest Rs 5,300 Crore in LPG Import Facility |
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New Delhi: Indian Oil Corporation (IOC), the nation's largest oil firm, today said it will invest Rs 5,300 crore in setting up an LPG import facility at Paradip in Odisha and laying pipelines.
IOC board in its meeting on January 29 approved laying of a 1,150 km oil pipeline from Paradip to Hyderabad at a cost of Rs 2,789 crore.
The Paradip-Hyderabad product pipeline "is proposed for evacuation of the products from the upcoming Paradip refinery to storage depots in Andhra Pradesh and Telangana," the company said in a regulatory filing.
The pipeline would have a capacity of transporting 4.5 million tons of fuel annually. "The pipeline with allied facilities is estimated to cost Rs 2,789 crore and would be completed in a period of 36 months after receipt of statutory clearances," it said.
IOC is building a 15 million tons a year refinery at Paradip at a cost of Rs 34,555 crore. The unit is to be commissioned in phases beginning March.
The Board also approved construction of 0.6 million tons per annum LPG import facility at Paradip at an estimated cost of Rs 690 crore to meet the cooking gas deficit in the eastern sector.
"In addition, the existing Paradip-Haldia-Durgapur LPG pipeline would be augmented and extended to Patna and Muzaffarpur to ensure smooth supply of LPG in the region," IOC said.
The pipeline augmentation and extension would cost Rs 1,823 crore and the project is expected to be completed within 36 months from the date of statutory approvals.
Paradip refinery will be capable for processing a broad basket of crude oil grades, including cheaper high-sulphur heavy crudes, which will help the company to improve bottomline.
IOC is also setting up a polypropylene project at Paradip at a cost of Rs Rs 3,150 crore by 2017-18.
Source : profit.ndtv.com
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