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Oil industry to invest Rs 150 billion in Andhra

M S Shankar in Hyderbad

It is a boom time in Andhra Pradesh. Several leading oil companies like the Indian Oil Corporation, the Hindustan Petroleum Corporation and the Bharat Petroleum Corporation are expected to invest over Rs 150 billion during the Ninth five-year Plan in the state, according to Union Minister for Petroleum and Gas T R Balu.

Balu said the total outlay on refining and other downstream areas will be Rs 97 billion, of which about Rs 29.50 billion will go to ongoing projects and about Rs 67 billion to projects during the ninth plan. The capacity of HPC's Visakha refinery is being increased from 4.5 million tonnes per annum to 7.5 million tonnes per annum at the cost of Rs 9.98 billion and is expected to be completed by September 1998. The refinery caters to a major part of Orissa and parts of Bihar besides Andhra Pradesh.

A hydro project for de-sulphurisation of high speed diesel will be set up at the cost of Rs 7.59 billion by April 1999.

Other proposals for the ninth plan include setting up of a Rs 14 billion parxylene plant and a Rs 18.65 billion power plant, both of which will be executed through joint ventures.

Balu said the 356-km white oil pipeline from Visakha to Vijayawada is being laid and would be commissioned by June 1998. The Rs 5.22 billion project is expected to move four million tonnes of petroleum products per annum.

A dedicated LPG import facility is being set up by the HPC at Visakha outer harbour at the cost of about Rs 420 million, which will increase the port's LPG handling capacity to 600 TMT per annum.

Balu also said Kakinada is emerging as the alternative port as the Visakha port was getting congested. Berthing facilities are also being developed at the port for tankers upto 20,000 dead weight tonnage.

The industry will also invest Rs 7.35 billion for developing tankages during the eighth and ninth plans. Under the eighth plan, tankage capacity of 605 TMT will be developed at Kakinada, Vijayawada/ Kondapalli, Rajahmundry/ Gokavaram, Visakha, Ramagundam/ Peddapalle, Cuddapah and Gooty at the cost of Rs 5.93 billion. Under the ninth plan tankages of 198 TMT will be developed at Visakha, Rajahmundry, Nizamabad, Warangal, Guntakal, Nellore and Ramagundam at the cost of Rs 1.41 billion.

The minister said that fuel linkage clearances had been given to Andhra Pradesh. ''Out of the total 44,000 MW power capacity sanctioned for South India, Andhra Pradesh has been allotted 1500 MW,'' he pointed out.