HPCL to relocate Bangalore LPG plant; to raise capacity

Business Line, New Delhi
Hindustan Petroleum Corporation Ltd (HPCL) will relocate its existing liquefied petroleum gas plant at Bangalore to nearby Nelamangala and also augment the capacity to 88 thousand million tonnes per annum (tmtpa).

The state-run company has estimated the expenditure required for relocating the plant at Rs 40-50 crore.

''We have a detailed feasibility report in place and estimate the project to cost anything between Rs 40-50 crore," the HPCL Director (Marketing), Mr. S.R. Choudhury, told PTI.

The capacity of the plant is also being augmented to 88 tmtpa, he said. The plant will also have an increased storage capacity of 2,000 million tonnes, against 1,000 mt at present.

Mr. Choudhury said the relocation was necessitated because the demand for LPG has gone up manifold. "The existing plant had a low capacity and we needed a new plant," he said.

He said the land had been identified at Nelamangala and the board will take a decision soon. HPCL is expected to buy 40 acres ofland for the project at Nelamangala, which is located 40 km from Bangalore.

"Normally, this type of a project requires 18-24 months to be completed," he said.

He said the existing plant suffers from problems relating to transportation as it was not linked by Railways.

According to sources, after relocating, HPCL plans to use the idle property in Bangalore to build housing complexes and a retail mall as part of its retail plans.

India consumes 10 million tonnes of cooking gas per year, of which about 3 million tonnes is imported. Domestic refiners imported LPG worth $1.5 billion in 2005-06.