Companies

IndianOil to invest ₹1,689 crore in new projects in Andhra Pradesh

V Rishi Kumar Hyderabad | Updated on December 02, 2020 Published on December 02, 2020

Investment includes revamping, setting up of facilities and storage capacities

IndianOil plans to invest ₹1,689 crore in new projects in Andhra Pradesh which includes ₹1,522-crore on petro products infrastructure and ₹167 crore on LPG storage facilities.

RSS Rao, Executive Director, State Head, IndianOil AP and Telangana, told Business Line: “the country’s overall energy basket is changing and the Government is keen that the dependence on gas must go up from 6.3 per cent now to 15 per cent by 2030. As a part of this, we are creating additional capacities across the country and in AP and Telangana.”

The investment includes revamping, setting up of facilities and storage capacities in Vijayawada, Visakhapatnam, Rajahmundry and Hyderabad (₹600-crore investment in Telangana) and various other facilities in AP.

At the existing Vijayawada petroleum storage terminal at Kondapalli, a ₹316-crore terminal would operate as a Tap off Point Terminal on the upcoming Paradip-Hyderabad Pipeline (PHPL) being set up with an outlay of ₹3,800 crore. The terminal is expected to be commissioned by September 2021.

IndianOil is setting up a ₹466-crore new grassroot terminal on a 60-acre site at Atchutapuram in Vizag with a storage capacity of over 74,000 kilo litres. The terminal, which would be a Tap off Point on the upcoming Paradip–Hyderabad Product pipeline, would cater to the petroleum product (MS/HSD) requirements of Visakhapatnam, Vizianagaram and Srikakulam districts and the project is expected to be completed by July 2021.

The Malkapuram terminal near Vizag is being revamped at a cost of ₹355 crore. The revamping is expected to be completed by February 2023. A new rail fed depot is coming up in Nakkanadoddi, Guntakal over 83 acres of land with a tankage capacity of 55,000 KL at an investment of ₹385 crore. The depot would replace the old Guntakal depot which is closed. The new depot is likely to be commissioned by March 2021.

LPG bottling

IndianOil has three Indane LPG bottling plants in Andhra Pradesh at Kadapa, Vizag and Kondapalli (Vijayawada) with a total bottling capacity of 360 thousand tonnes per annum (TTPA) and LPG storage capacity of 6,800 tonnes. Together these three bottling plants churn out more than one lakh cylinders per day.

In addition to the above, to meet the increasing demand of LPG in Andhra Pradesh, 120 TTPA grass root LPG bottling plant at an investment of ₹167 crore is coming up at Chittoor, which would add another 36,000 LPG cylinders to the daily output of IndianOil in the State. This will be ready by July 2022 and take the bottling capacity of Indane LPG to 1.4 lakh cylinders per day.

Rao said, “IndianOil along with partners has won 40 geographical areas for City Gas Distribution. One of the CGD will cater to Vizag, Vizianagaram and Srikakulalam and efforts are on to develop necessary infrastructure there.”

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Published on December 02, 2020
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