Indian Oil gets board's nod for laying Paradip-Hyderabad product pipeline

The 1,150-km-long pipeline would have a capacity of 4.5 million metric tonne per annum

Indian Oil Corporation Limited (IOCL) has received an approval from its board of directors for the laying of Paradip-Hyderabad product pipeline, proposed for evacuation of products from the upcoming Paradip refinery to storage depots in Andhra and Telangana.

The pipeline, having a length of 1,150 km, would have a capacity of 4.5 MMTPA. Along with allied facilities, it is estimated to cost Rs 2,789 crore and would be completed in 36 months after receipt of statutory clearances, IOCL said in a filing to the BSE on Monday.

The board of directors of IOCL has also approved the construction of 0.6 MMTPA liquefied petroleum gas (LPG) import facility at Paradip at an estimated cost of Rs 690 crore, and augmentation and extension of Paradip-Haldia-Durgapur LPG pipeline to Patna and Muzaffarpur to ensure smooth supply of LPG in the region.

The pipeline augmentation and extension is estimated to cost Rs 1,823 crore. The project would be completed within 36 months from the date of statutory approvals, the company said. IOCL's scrip ended the trade at Rs 340.15 on the BSE on Monday, down 2.04%, over the previous close of Rs 347.25 per share.