Green Hurdle Derails Indian Oil's LPG Expansion Plans in Northeast India

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Researched by Industrial Info Resources (Delhi, India)--Indian Oil Corporation Limited's (BSE:530965) (IOCL) (Delhi) Liquefied Petroleum Gas (LPG) Bottling Plant expansion projects in northeast India are facing a major setback due to pending environmental clearance from state governments. IOCL had planned an expansion of its existing LPG bottling units in northeast India in order to meet the growing demand for LPG in the region.

The expansion involves the addition of two Mounded Storage Vessels (MSV) with capacities of 150 metric tons (MT) at Dimapur in Nagaland; three 150-MT MSVs at Bishalgarh in Tripura; two 600-MT MSVs at Sekmai in Manipur; two 600-MT MSVs at North Guwahati; and three 600-MT MSVs at Silchar in Assam.

IOCL has awarded the contract to Fabtech Projects & Engineers Limited (Pune, Maharashtra) in June 2012, but the construction work could not be kicked-off at four out of the five locations due to the pending clearance. As per the original schedule, construction on these projects was slated to begin in August 2012.

IOCL caters to the LPG demand in the northeast from its Bottling plant at Bishalgarh, which has a 5,000-metric-ton-per-annum (MTPA) capacity; the 5,000-MTPA Dimapur plant; the 30,000-MTPA Sekmai unit; and two plants in Assam: the 22,000-MTPA North Guwahati and 10,000-MTPA Silchar Bottling Plant.

IOCL is India's largest oil marketing company. Business segments of IOCL include refining, pipelines, marketing, petrochemical, exploration, and the production of natural gas. IOCL controls 10 of India's 20 refineries. Indian Oil and its subsidiaries account for a 47% share in the petroleum products market.

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