IOC will increase LPG production in the North East by 53% to 80 mn of cylinders by 2030

PSU Indian Oil Corp (IOC) plans three new plants in the northeast to increase its LPG bottling capacity by nearly 53% to eight crore cylinders per year by 2030 to meet growing demand In the region.

CIO (IndianOil-AOD) Executive Director G Ramesh has said that the proposed new LPG bottling plants will be installed in Mizoram, Meghalaya and Arunachal Pradesh for a total investment of Rs 325-350 crore in a combination of wholly owned and public-private partnership. (PPP).

“We are increasing our bottling capacities in order to meet the growing demand for LPG in the North East region. We are targeting a bottling capacity of eight crore cylinders per year by 2030 against a forecast demand of seven crore units “, he told PTI.

IndianOil-AOD, the company’s northeast division, currently has an annual bottling capacity of 5.23 crore LPG cylinders across its nine plants, and capacity utilization stands at 5.11 crore of units, Ramesh said.

“The total investment in this expansion exercise will be in the range of Rs 325-350 crore, which will be borne by the IOC and the private partner, over the next two to three years. We are looking to engage a private player for the Arunachal Factory in Pradesh,” he added.

The Mizoram unit will be a brownfield site, while those in Arunachal Pradesh and Meghalaya will be developed into green facilities, the official said.

“We had two units at Kimin in Arunachal Pradesh and at Mualkhang in Mizoram. These old factories were smaller and did not comply with new safety standards. the day,” Ramesh explained.

The Mizoram plant, which is still at the estimation stage as adjacent land is being acquired, will have a daily capacity of 30,000 cylinders and will likely cost Rs 150 crore, he added.

“The Meghalaya plant will be installed at Umiam and it will be a new unit. We will invest Rs 75 crore and the plant will be commissioned by December 2023 with a rollout capacity of 7,000 bottles per day,” said the manager.

The company is looking for land for the factory in Arunachal Pradesh, as the previous location was not sufficient for a larger modern facility.

“We are also discussing with the state government of Arunachal Pradesh as well as an interested partner, who will set up and own the plant. This unit will probably cost around Rs. partner with technical support from us under a long-term agreement,” Ramesh said.

Currently, Assam has six operational units and one each is located in Manipur, Nagaland and Tripura.

Of these facilities, one in Assam and one in Tripura have recently been established. These two factories have started trial production, but have not yet been officially commissioned, Ramesh said.

He said the new factory in Nagaon, Assam is IOC’s first-ever private bottling unit in the country and can fill 7,000 bottles a day.

“The Agartala unit is a completely new facility and it can produce two crore cylinders every year. This particular plant alone can meet Tripura’s demand till 2040,” Ramesh said.

Further, IOC-AOD is expanding the existing capacity of its Bongaigaon LPG plant in Assam to 120,000 Metric Tons Per Year (TMTPA) from 60 TMTPA for Rs 40 crore and it will be completed by March 2023.

When asked if the company plans to export LPG from the North East to neighboring countries, he said the 12 facilities will mainly meet demand in the region.

“At the moment we are exporting 2,000 to 2,500 bottles to Bhutan. We don’t expect that to increase much in the future and our main market will continue to be the northeast,” said the manager.

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