Sixth LPG bottling plant for Telangana proposed

• Posted in OilGas
• on January 10, 2017
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Union Minister assures to convene a meeting of oil companies to discuss the issue
A serious attempt to secure the sixth cooking gas bottling plant in Telangana was initiated last week with a request to Union Petroleum Minister Dharmendra Pradhan to sanction one for the Bharat Petroleum Corporation Limited along the railway track in Karimnagar-Warangal. The BPCL is the only one among the three LPG cylinder-supplying oil companies not to have a second bottling plant in the State. The Hindustan Petroleum Corporation was sanctioned its own second project at Jammikunta in Karimnagar district two years ago and is set to complete the same in 18 months from sometime next week when it takes possession of the entire land required. Both companies have plants presently at Cherlapalli here while the Indian Oil Corporation is also located there and at Timmapur in Mahabubnagar district.

Installed capacity

The three companies together have an installed capacity of 628 thousand metric tonnes (tmt) per annum but it has still left a gap of about 2 million families without LPG connections. The new HPCL unit at Jammikunta with a capacity of 60 tmt will partly meet the fresh demand but not cover the future requirements entirely, sources in the oil industry said. In this context, the TRS led by its Karimnagar MP B. Vinod Kumar met the Union Minister last week seeking a bottling plant for the BPCL at Kamalapur, Jammikunta, Elkaturthi or Uppal in Karimnagar-Warangal to cater to north Telangana districts. Mr. Pradhan promised to convene a meeting of all three oil companies as early as possible to take stock of their infrastructure and requirements of their regional offices in the State, Mr. Vinod Kumar said. There are about 10 million LPG connections in Telangana but only 9.1 million of them were active. Though there were no constraints of supply as the companies delivered refill in two days in towns and Hyderabad and three to four days in rural areas, they set their sights on expansion to meet future requirements. Also, the companies were able to give new connections across counters on demand.

Augmentation

The BPCL’s lone plant at Cherlapalli with a capacity of 170 tmt per annum produced 40,000 cylinders per day and met 2.3 million connections across the State. The IOC is going for augmentation of its Cherlapalli unit from 120 tmt to 250 tmt by March-end. This would take its overall capacity to 370 tmt per annum while the HPCL which is producing 218 tmt per annum at Cherlapalli will add 60 tmt per annum when its second unit at Jammikunta is commissioned. There are about 10 million LPG connections in Telangana, but only 9.1 million are active
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