New Project: Essar plans Wardha storage depot

Vol 19, PW 16 (21 Apr 16) Midstream & Downstream

Essar is preparing to spend Rs94cr ($14m) to set up a 16-tank fuel storage depot at Neemgaon in Maharashtra's Wardha district, an area mainly in the news for the high number of farmer suicides.

Expect statutory clearances for the project to take another five or six months after which EPC tenders will be issued. "We will begin work on the project as soon as we receive environmental clearance," confirms an Essar source.

It will then take 24 months to construct the depot, designed to ensure smooth supplies of petroleum products to Essar's fast-growing all-India network of around 1900 petrol stations. Ten tanks will come up under Phase-I: three above-ground vertical cone roof top high speed diesel tanks each of 4000-kilolitres, three 2000-kilolitres petrol tanks, two underground tanks each of 70-kilolitre capacity to store petrol and high speed diesel residue or 'slop' recovered from tanks after cleaning with chemicals, and two underground tanks each of 20-kilolitres capacity to store ethanol.

In Phase-II, six tanks will be set up, including three for superior kerosene oil. All tanks will be designed, built and tested in line with API-650 (American Petroleum Institute) 11th edition standards.

Essar owns 21 hectares of land at Neemgaon. "We have applied to Wardha authorities to change the 'land use' which is currently classified as agricultural," says Essar.

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