Indian Oil Corporation Limited, an Indian Government-owned integrated oil company has planned an investment worth Rs 1,689 crore in the state of Andhra Pradesh. Focus of this investment is to develop petro products infrastructure and Liquefied Natural Gas (LPG) storage facilities.
Why & What is Indian Oil’s Investment Plan
IOCL’s investment is planned to meet the growing demand for petroleum products, including petrol, diesel and LPG in Andhra Pradesh. Amount worth Rs 1,522 crore shall be invested to develop petro products infrastructure and amount worth Rs 167 crore shall be invested on LPG storage facilities.
- Rs 316 crore worth investment shall be made to increase the storage capacity and revamp the existing Vijayawada Terminal at Kondapalli, which shall be operating as a tap-off point terminal for the upcoming Paradip-Hyderabad Pipeline (PHPL). The terminal is expected to be commissioned by September 2021.
- Rs 466 crore worth investment shall be made for setting up a grassroot terminal at Atchutapuram in Visakhapatnam over 60 acres of area with a storage capacity of over 74,000 Kilo liters (Kl). The terminal is expected to be completed by July 2021.
- Rs 355 crore worth investment shall be for revamping work at Malkapuram terminal near Visakhapatnam. The work is expected to be completed by February 2023.
- Rs 385 crore worth investment shall be made for developing a new rail fed depot in Nakkanadoddi, Guntakal with a tankage capacity of 55,000 Kl. The project is likely to be commissioned by March 2021.
- Rs 167 crore worth investment shall be made for setting up 120 Tank Trucks Parking area (TTPA) LPG bottling plant at Chittoor. The project will be ready by July 2022. This project shall take the bottling capacity of Indane LPG to 1.4 lakh cylinders per day in the state from one lakh cylinders per day at present.
Bigger Picture: Government of India is targeting to raise the share of Natural Gas in India’s energy basket to 15 per cent by 2030 from the current 6.3 per cent.
“An estimated investment of $66 billion is lined up in developing gas infrastructure, which includes pipelines, city gas distribution, and LNG regasification terminals” Oil Minister Dharmendra Pradhan said at KPMG India’s annual energy conclave ENRich 2020 as reported in Livemint dated 2nd December 2020.
About Indian Oil Corporation Limited (IOCL): Indian Oil is an Indian Government-owned oil company headquartered in New Delhi. IOCL is also the largest commercial oil company in India.