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IOC to invest Rs 380 cr for Chennai-Madurai pipeline
New Delhi, Aug 10: State-run Indian Oil Corp (IOC) will invest Rs 380 crore in laying a pipeline from Chennai to Madurai to transport petroleum products in the region.
New Delhi, Aug 10: State-run Indian Oil Corp (IOC) will invest Rs 380 crore in laying a pipeline from Chennai to Madurai to transport petroleum products in the region.
"The IOC board has cleared the Chennai-Trichy-Madurai product pipeline to evacuate products from IOC's subsidiary Chennai Refinery," IOC director (pipelines) P Uplenchwar told newspersons here.
The pipeline would be in place by 2005 when Chennai refinery's Manali unit expansion from 6.5 million tonnes to 9.5 million tonnes is expected to be completed.
The Chennai-Trichy-Madurai pipeline was earlier being pursued by Petronet India Ltd but the project could not take off as IOC was unwilling to sign take or pay agreement. IOC and PIL held 26 per cent each in the project while remaining was earmarked for financial institutions/strategic investors.
Anticipating delays, IOC board on July 30 decided to take up the project on its own, but has reduced the capacity of the pipeline and the project cost to Rs 380 crore from Rs 505 crore, he said.
IOC has reduced the diameter of the pipeline and increased its length from 526-km that Petronet was planning, to 680-km. The pipeline will additionally have a tap-off point midway at Sankari from where a branch pipeline will go to Salem which is a high-demand area for petro goods. Besides, tap-off points at Asanur and Trichy would enable the firm feed demand centres around Neyveli, Trichy, Madurai and Thanjavur.
The pipeline, which will transport petrol, kerosene and diesel, will have a design capacity of 2 million tonnes per annum in the first phase and another 2.5 million tonnes in the second phase, Uplenchwar said.
Bureau Report
The pipeline would be in place by 2005 when Chennai refinery's Manali unit expansion from 6.5 million tonnes to 9.5 million tonnes is expected to be completed.
The Chennai-Trichy-Madurai pipeline was earlier being pursued by Petronet India Ltd but the project could not take off as IOC was unwilling to sign take or pay agreement. IOC and PIL held 26 per cent each in the project while remaining was earmarked for financial institutions/strategic investors.
Anticipating delays, IOC board on July 30 decided to take up the project on its own, but has reduced the capacity of the pipeline and the project cost to Rs 380 crore from Rs 505 crore, he said.
IOC has reduced the diameter of the pipeline and increased its length from 526-km that Petronet was planning, to 680-km. The pipeline will additionally have a tap-off point midway at Sankari from where a branch pipeline will go to Salem which is a high-demand area for petro goods. Besides, tap-off points at Asanur and Trichy would enable the firm feed demand centres around Neyveli, Trichy, Madurai and Thanjavur.
The pipeline, which will transport petrol, kerosene and diesel, will have a design capacity of 2 million tonnes per annum in the first phase and another 2.5 million tonnes in the second phase, Uplenchwar said.
Bureau Report