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Our Bureau

Storage capacity can handle fuel needs for 10 days

Hyderabad , Oct. 6

Reliance Industries Ltd (RIL) would maintain and operate the first open access fuel storage and service facility in India at the upcoming GMR Hyderabad International Airport (GHIAL) at Shamshabad near here.

The company has won the contract for the fuel farm operations, outbidding key players such as IOC, Sky Tanking, Swissport, BPCL and ONGC.

Announcing the award of contract to Reliance here on Friday, Mr T. Srinagesh, Chief Operating Officer (COO) of GHIAL, said the fuel farm would have three storage tanks with a total capacity of 13,500 kilo litres of ATF (aviation turbine fuel).

The open access model would allow any ATF supplier to supply fuel to airlines according to their own agreements.

GHIAL roped in Red Mallee, an Australian-based consultant, and Hong Kong Airport Services (Hong Kong) that pioneered the model.

While offering a wide choice of suppliers for airlines, the model could trigger competition among oil companies for supply of fuel at lesser rates.

Underground pipelines

An interesting feature of the fuel supply at the airport was that underground pressurised pipelines would connect the storage tanks with the apron.

Mr Srinagesh said the storage capacity of the fuel farm could handle fuel needs for 10 days. "We are expecting that over 200 aircraft would fly in and out of the airport every day," he said.

The first flight was expected to fly from the airport in the first quarter of 2008.

In order to resolve any issues related to operation of the farm, the company would form a joint coordination panel including all the stakeholders.

Reliance plans

Meanwhile, sources in RIL said the company was planning to set up 20-25 aviation fuel stations across the country by the end of the financial year. The company had earmarked Rs 100 crore for this.

The aviation fuel market size in India was at 3.6 million tonnes. "It is growing at 15 per cent annually," he said.

RIL's capacity in this was two million tonnes, most of it exported.

More Stories on : New Business | Petroleum | Airlines | Reliance Industries Ltd | Andhra Pradesh

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Reliance bags Hyderabad airport fuel farm operations

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