Indian Oil Corp has been losing Rs 1 crore daily since mid-Feb due to public agitation in Kerala that has held back progress on its planned Rs 2,200 crore Liquefied petroleum gas (LPG) import terminal and pipeline project, the company said in a statement on Tuesday.
Indian Oil’s project comprising an LPG import Terminal at Kochi, an LPG pipeline between Kochi and Salem, and a bulk terminal at Palakkad, is aimed at increasing cooking gas supply in Kerala. The terminal, planned to be built close to where Petronet LNG has a Liquefied natural gas import terminal in Kochi, has been accused by protesters of being unsafe for people living in the vicinity.
“The project not only has all the necessary approvals in place but is designed to conform to global standards of safety,” Indian Oil said in a statement. “The terminal will store LPG in mounded vessels, which are considered the safest in the industry worldwide. These vessels are made of 45-mm thick boiler quality steel plates and will be buried deep in the sand, surrounded by a 1.25-metre thick reinforced concrete wall.”
“The coastal stretch of the project is only 690 metres and hence will not disturb any of the fishing activities,” the company added.
National Green Tribunal (NGT) as well as Kerala High Court have permitted Indian Oil to carry out the project work but a ‘small group of people’ has been obstructing it since February 16, the company said.
The proposed LPG import terminal will significantly help reduce the backlog for LPG cylinder supply in Kerala, which is currently at about 15 days, the company said.
The demand for LPG has been growing rapidly in the country as more and more people switch to clean cooking fuel. It rose over 10% last fiscal year. Cooking gas is now available to 72% of households in the country, and is expected to rise to 95% by 2022.
