Oil firm to set up 2 LPG bottling plants
Jaipur   20-Oct-2010

The IndianOil will set up two new LPG bottling plants in Rajasthan, one at Jodhpur and another at Udaipur.

In view of the demand for cooking gas in the state, the firm is identifying land for both its 60,000 metric tonne per annum (TMTPA) each plants.

The IOC presently operates four LPG bottling plants in the state with a combined bottling capacity of 240 TMT. These plants are at Jaipur (120 TMT), Ajmer (60 TMT), Bikaner (930 TMT) and Jhunjhunu (30 TMT).

The four plants together have a combined LPG storage capacity of 8,000 MT, equivalent to 10 days cover for the state.

The two major plants at Jaipur and Ajmer are connected with the Gas Authority of India Ltd's LPG pipeline from Jamnagar and Kandla for receipt of bulk product, while the two plants at Jhunjhunu and Bikaner receive bulk product by road from Jaipur and Ajmer.

In addition, the capacity of the Ajmer bottling plant will be doubled from 60 to 120 TMTPA and an additional 24 point carousel will be set up for LPG cylinder filling by the this year-end at a cost of Rs. six crore ($1,351,859).

Third carousel is proposed at the Jaipur plant, which already has two 18-point carousels. This would cost Rs. five crore ($1,126,549) and help raise the plant's achievable capacity from 120 to 180 TMTPA.

The IOC is also firming up plans to augment the storage capacity of its operating LPG plants at Jaipur, Ajmer and Bikaner to ensure a minimum 10 days cover by 2014-15.

As a part of its expansion, the company will commission 40 new LPG distributorships in the state soon. In addition, 120 new LPG distributors are being appointed in rural areas as a part of Rajiv Gandhi Gramin LPG Vitrak Yojana. The new distributorship scheme will ensure cheaper gas connections in rural areas.