IOC wants to set up power plant with Neyveli Lignite

Vol 9, PW 6 (30 Jun 05) News in Brief

Indian Oil subsidiary Chennai Petroleum wants to set up a joint venture power station with Neyveli Lignite Corporation.

Plans are to use the heavy residue from Chennai Petroleums Manali refinery to set up the 492-MW power station. Neyveli Lignite is selecting a consultant to update a previously prepared detailed feasibility report on the project.

One major obstacle is the rising price of crude and customer demand for a lower power tariff. The selected consultant will have to assess the viability of the project.

Separately, Chennai Petroleum wants to lay a 42-inch crude oil pipeline from Chennai port to its Manali refinery to replace its existing pipeline. Cost of the project: Rs52cr ($11.6m).

A project report is being drawn up and the detailed route alignment survey and soil studies have been completed. IOC has been appointed project management consultant.

Chennai Petroleum wants the pipeline laid by end 2006.