Indian Oil Corporation limited to invest Rs1,689 crore in Andhra Pradesh

To meet the growing demand for petroleum products, including petrol, diesel and LPG in the State, Indian Oil Corporation Limited (IOCL) is set to invest Rs1,689 crore to develop infrastructure and expand its distribution network, according to IOCL executive director and head of AP and Telangana R.S.S. Rao.

The total investment, Rs1,522 crore would be invested in petro products infrastructure and Rs167 crore in Liquid Petroleum Gas. Some of the projects were already taken up.

Mr. Rao said the existing Vijayawada Terminal at Kondapalli, which would operate as Tap Off Point Terminal for the Paradip-Hyderabad Pipeline (PHPL), would be revamped and the storage capacity increased at a cost of Rs 316 crore by September 2021. The PHPL, spanning over 1,200 km from Paradip in Odisha to Hyderabad covers 723 km in AP .

“Another Tap Off Point Terminal for PHPL, a grassroots terminal, is coming up in over 60 acres of area at Atchutapuram, Visakhapatnam, at a cost of Rs 466 crore and with a storage capacity of over 74,000 km. The terminal will cater to the needs of Visakhapatnam, Vizianagaram and Srikakulam districts and is expected to be completed by July 2021,” Mr.Rao added. While the supply of all-white oils would be gradually shifted to the new terminal from the existing Malkapuram terminal, black oil supply would continue as it is going to be revamped with Rs355 crore by February 2023.

The demand for LPG has been growing and IndianOil has LPG market share of 35.5% in cooking gas with a sale of 2,59,000 metric tonnes (TMTs) during 2020-21 in the State as it serves 49 lakh customers.