New Delhi, Oct 09: The government proposed to build a Rs 2,760 crore strategic storage facility by 2007-08 to stock 45 days’ requirement of liquefied petroleum gas (LPG) as cover for emergencies. "A plan to build storage facility for 530,000 tonnes of LPG, enough to meet the country's 45-days requirement, in phases is under active consideration," official sources said.
In phase-I, tankages to stock 37-days cover of 250,000 tonnes LPG is planned by 2005-06. Another 165,000 tonnes storage facility would be added by 2006-07 to take the total cover to 41 days while by 2007-08 another 115,000 tonnes facility would be created to provide for 45-days cover.
"Total investment will be about Rs 2,760 crore including Rs 120 crore for downstream infrastructure," they said.
The strategic LPG reserves are proposed to be built by a separate corporation, that would carry out detailed feasibility of proposed tankages in different regions. A cess on all petroleum products - LPG, kerosene, petrol and diesel - may be levied to fund the construction and inventory cost.
Bureau Report