KOCHI: As a fallout of the Covid-induced lockdown and the protests from residents and environmental activists, the project cost of Indian Oil Corporation’s LPG import terminal at Puthuvype has escalated by Rs 200 crore to Rs 950 crore, a top official told TNIE.
The date of commissioning has also been postponed from June this year to May 2022, a further delay of nearly a year.
Though the plan was to commission the project at an estimated cost of Rs 750 crore, the delay and the increase in prices of some materials have pushed the cost up, said T D Sabu, deputy general manager, LPG operations, IOC.
“The expensive steel plates for tanks rusted away because of the delay resulting from the unnecessary protests. In the meantime, the international market for the same shot up. We could have completed the project for Rs 750 crore had we gone by the earlier deadline. Now, we are facing a cost escalation of Rs 200 crore,” he said.
The project had been facing hurdles following protests for several years. Work resumed after two-and-a-half years on December 17, 2019, when the Ernakulam district administration clamped prohibitory orders under CrPC Section 144 at Puthuvype village comprising 11 wards. However, the coronavirus lockdown announced in March last year stalled work again.
“Four 2,050-tonne propane tanks and four 1,800-tonne butane tanks have to be set up at the project site. Since the plates were damaged, we have invited a fresh tender for new steel plates. Their delivery will take time. Though civil work is progressing in full swing, the fabrication of tanks will start later. We are planning to complete the project by the middle of 2022,” Sabu added.
IOC launched the project intending to reduce LPG supplies from the Mangalore Refinery through roadways. The Indane LPG Bottling Plant at Udayamperoor receives nearly 120 tanker lorries. With the commissioning of the Puthuvype plant, the transportation of LPG from Mangaluru can be eliminated completely.
In Kerala, IOC has 52.3 lakh domestic customers for its Indane LPG. Supplies to customers are made through a network of 347 distributors who are supplied cylinders from IOC’s LPG bottling plants at Kochi (Udayamperoor), Kozhikode (Chelari) and Kollam. Indane LPG has a market share of 50.7 per cent in the state.
High-octane
With the commissioning of Puthuvype plant, transportation of LPG from Mangaluru by road can be eliminated completely.