HPCL pumps LPG for Modi

Vol 19, PW 19 (02 Jun 16) News in Brief

Here's a sign of just how desperate state-owned companies are to please Narendra Modi who is determined to quickly roll out his free LPG scheme for poor families.

Hindustan Petroleum is planning to pump LPG through its established 18-inch diameter, 243-km petrol, diesel, ATF and kerosene pipeline from the Guru Gobind Singh refinery at Bhatinda in Punjab to Bahadurgarh in Haryana. "This is to ensure adequate LPG supply under the PM's free LPG scheme," says an industry source.

HPCL will spend Rs400cr ($60m) on the project of which Rs100cr ($15m) will be spent on a pumping station at Raman Mandi; Rs180cr ($27m)on an intermediate pumping station, eight SV stations and pipeline modifications and Rs120cr ($18m) on receipt and separation facilities at Bahadurgarh. Additional storage facilities will be set up only in the second phase from 2021.

The new facilities will take up to 24 months to set up after all the approvals including environmental clearance are in place. At present the pipeline's capacity is 4.71m t/y but with LPG it will increase to 7.11m t/y.

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