VISAKHAPATNAM: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the Indian Institute of Petroleum and Energy (IIPE) in Visakhapatnam as 'an Institute of National Importance' through an Act of Parliament.
The Cabinet also approved Rs 655.46 crore as the capital expenditure to set up the IIPE and Rs 200 crore towards its endowment fund, in addition to a contribution of another Rs 200 crore from the oil majors.
The IIPE was promised by the Centre under the 13 Schedule of the AP Reorganisation Act, 2014 during the State bifurcation.
In October last year, foundation stone was laid for its new campus which is coming up in 201.8 acres at Sabbavaram with a budgetary allocation of Rs 800 crore which will be sanctioned over 10 years.
At present, the IIPE is being run from a temporary campus in the engineering block of Andhra University. After admissions in July last year, the classes started in the first week of August 2016 with 95 students enrolled for two courses—petroleum engineering and chemical engineering. The IIPE is being mentored by IIT, Kharagpur.
Being an institute of national importance now, the IIPE will have a defined governance structure as well as legal mandate to grant degrees similar to the IITs. "A separate Act will also impart the required status to the Institute to become a centre of excellence in petroleum and energy studies," said a communique issued by the PIB on Wednesday.
"This is great news for the students of Andhra Pradesh. The decision will increase the credibility of the university and we can focus on the PG programmes," said IIPE advisor (academics) and director in-charge VSRK Prasad.
The construction of the new campus is expected to be completed by the end of this year.