Lpg Venture At Haldia Gets Fipb Nod

The Foreign Investment Promotion Board has cleared a foreign direct investment (FDI) proposal in the liquefied petroleum gas (LPG) project of East Coast Petroleum Pvt Ltd proposed to be set up at Haldia in West Bengal.

This is the second FDI proposal to be cleared by the FIPB.

At a meeting held on Saturday, the Foreign Investment Promotion Board had cleared Austrian firm, Gas Auto Internationals, proposal to float a joint venture with Delhi-based Jay Cylinders Ltd for importing, bottling and marketing liquefied petroleum gas for use as automotive fuels.

This clearance signals finalisation of the governments policy for use of LPG as automotive fuel.

 

Gas Auto plans to modify petrol-driven vehicles to enable them to run on LPG. Besides, the company also plans to set up LPG filling stations in Delhi, Mumbai, Ahmedabad and other major cities.

East Coast Petroleum has been allowed to bring in Rs 112.50 crore as 37.5 per cent foreign equity from Kuwaiti companies which would also arrange for import of crude oil from Kuwait.

The Rs 800 crore project involves a foreign loan component of Rs 500 crore.

East Coast had acquired the letter-of-intent from Calcutta-based Meplac Udyog, which was issued the letter of intent in March 1996 for setting up a three mmtpa oil refinery for manufacture of LPG.