IOCL to invest Rs 5,400 cr in Kerala

Kochi: Indian Oil Corporation Ltd (IOCL) on Saturday said it will be investing Rs 5,400 crores on its various infrastructure projects in Kerala which will contribute significantly to the state's economy and its people.

Elaborating on his company's roadmap for Kerala, IOCL Kerala head P.S. Mony said they are constructing a LPG import terminal with six lakh MT capacity per year in Puthuvypeen SEZ of Cochin Port Trust.

"The project also includes laying of a pipeline from the Jetty to Kochi refinery via IOCL's LPG Plant at Kochi. This pipeline would be hooked to Kochi-Salem Pipeline, which is also under construction. The entire project, which also includes a LPG terminal being constructed by BPCL at Palakkad is expected to cost around Rs 2,200 crore. The pipeline is being constructed jointly by IOCL and BPCL," Mony told reporters here.

Explaining its significance, Mony said this terminal is very important since the indigenous availability of LPG in the country is only half of the demand.

"The LPG customer base in the country is presently 15 crores, which is expected to double by 2020. LPG demand in the country is presently growing by 11 per cent. The LPG consumption of Kerala also is expected to rise significantly by 2019. 

"LPG imports are expected to rise significantly by 2020 from the current levels of 50 per cent and IOCL is augmenting the LPG infrastructure across the country including setting up of 23 new bottling olants, the Mundra-Gorakhpur LPG Pipeline besides the Import Terminal at Kochi and the Kochi-Salem Pipeline. The LPG Import Terminal at Kochi has been targeted to be completed by February 2018," he added.

For Kerala, the state government is expected to earn an additional annual tax revenue of around Rs 150 crore per annum.

Mony pointed out that the IOCL is also setting up the Ernakulam City Gas Project in collaboration with Adani Group.

"The first CNG retail outlet is expected to be commissioned shortly. LNG/LCNG stations are also underway for providing greener fuels with lesser environmental impact," he added.