Public sector oil marketing companies (OMC) have lined up investment of over Rs 1,260 crore in Uttar Pradesh over the next two years to augment their Liquefied Petroleum Gas (LPG) bottling and distribution capacity.
OMCs will set up three greenfield LPG bottling plants in Gorakhpur, Gonda and Varanasi. While the Gorakhpur plant will be set up by oil marketing behemoth Indian Oil Corporation Limited (IOCL), the other two units will be set up by its peer Hindustan Petroleum Corporation Limited (HPCL).
Another terminal will be set up at Mirzapur district in eastern UP, IOCL executive director (corporate communications & branding) Subodh Dakwale said here.
LPG penetration in UP – which was just about 47 per cent compared to the national average of 55 per cent some years ago – is now at par with the average of 77 per cent post the launch of the ambitious Pradhan Mantri Ujjwala Yojana. The scheme targets 50 million free LPG connections to Below Poverty Line (BPL) families by 2019.
Till date, almost 30 million new LPG connections have been installed in the country. The composite LPG connections in India stand at almost 220 million.
UP, which earlier had about 16.7 million LPG connections, witnessed a release of over 6 million new LPG connections under Ujjwala.
“Currently, UP has LPG consumption capacity of roughly 2.14 million tonnes (Mt) against the combined bottling capacity to the tune of 2.44 MT. Keeping in mind the projected 13-14 per cent growth, we have planned to not only meet but even surpass the future LPG requirement in the state,” he added.
Meanwhile, a 2,100 km-LPG pipeline is currently being laid from Kandla port (Gujarat) to Gorakhpur to connect all the bottling plants in UP for uninterrupted distribution and supply.
“We have identified land for the new Mirzapur LPG terminal, which will be spread over 120 acres. It will also comprise a dedicated railway line for transportation,” IOCL UP head Avinash Verma said.
At present, there are about 3,000 LPG distributors in UP, up from 1,900 in 2014, while 1,000 new distributorships have been proposed to cater to the growing demand.
Meanwhile, the OMCs contributed over Rs 13,870 crore to the UP exchequer during 2016-17 in the form of Value Added Tax (VAT) and duties, of which IOCL alone accounted for about Rs 9,513 crore.
At present, IOCL has 7 terminals at Allahabad, Kanpur, Lucknow, Mughalsarai, Agra, Mathura and Meerut, and 6 bulk oil depots at Baitalpur, Gonda, Jhansi, Anola, Banthra and Najibabad.
The LPG supply is met through its 13 bottling plants at Allahabad, Aligarh, Farrukhabad, Kanpur, Pattikalan (Kashipur), Lakhimpur Kheri, Loni, Lucknow, Mathura, Sahahjahanpur, Trishundi (Sultanpur), Varanasi and Etawah.
IOCL caters to the civil and defence aircraft at Lucknow, Kanpur, Varanasi and Agra through its aviation fuel stations.
Meanwhile, Union Petroleum Minister Dharmendra Pradhan on Sunday distributed letter of intent (LoI) to 300 new LPG distributors in Lucknow, in the presence of UP chief minister Yogi Adityanath.
He said that the Centre was working on a plan to make petrol from ratoon (what is left after sugarcane crop is cut), besides also procuring ethanol from farmers at the rate of Rs 40 per litre. This, he claimed, would help in doubling their income by 2022 as intended by PM Modi. “We are also working on a roadmap to produce petrol from garbage.” Read more
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