AP to receive Rs 1,689 cr from Indian Oil Corporation
ECONOMY & POLICY

AP to receive Rs 1,689 cr from Indian Oil Corporation

In a recent announcement, Indian Oil Corporation said it is all set to infuse a sum worth Rs 1,689 crore into Andhra Pradesh, specifically to facilitate the development and expansion of its infrastructure and distribution network in a bid to meet the rising demand for petroleum products, including diesel, petrol, and LPG in the region.

At a press conference, Indian Oil officials disclosed that the projects that have been undertaken and subsequently scheduled for commissioning in the next two years. According to the corporation, Rs 1,522 crore out of the entire investment would be pumped into the infrastructure of petro products and the remaining Rs 167 crore into liquified petroleum gas (LPG). Further, Kondapalli’s existing Vijayawada Terminal, which is set to function as the Tap Off Point Terminal for the Paradip-Hyderabad Pipeline (PHPL), would undergo a revamping to increase its storage capacity.

A grassroots Tap Off Point Terminal for the PHPL is in the works at Atchutapuram in Visakhapatnam to meet the needs of the districts of Visakhapatnam, Srikakulam, and Vizianagaram, he added. He said that the completion of this terminal, which is spread over 60 acres of land and is being undertaken for Rs 466 crores is expected to achieve completion by July 2021.

Apart from the three existing Indane LPG bottling plants at Visakhapatnam, Kadapa, and Kondapalli, a new one is all set to be established in Chittoor. The setting up of the new plant would improve the bottling capacity of the state to an estimate of about 1.4 lakh cylinders per day. Additionally, the construction of a new rail fed depot worth Rs 385 crore is in the works at Nakkandodi in Guntakal. This project, which has a tankage capacity of approximately 55,000 kilometres is likely to undergo commissioning by March 2021.

To progress with the setting up of the new 1,291 retail outlets in the state, IOC has sent applications. So far, it has recorded just 1,139 responses, upon which it has issued the letter of intent for the opening of 346 outlets.

Source: The Hindu

Also read: Rs 100 bn to be invested in 1,000 LNG stations

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