Pradhan seeks CM Naveen’s cooperation for LPG bottling plant in Odisha

Bhubaneswar: Union Petroleum and Natural Gas Minister Dharmendra Pradhan sought Chief Minister Naveen Patnaik’s cooperation for the proposed LPG bottling plant in Odisha.

He urged Patnaik to intervene in the matter and direct the concerned authorities to allot the land to the IOCL for the LPG bottling project in Khordha.

Expressing his displeasure over the delay in allocation of land for the proposed plant in Khordha, Pradhan wrote to Patnaik, “Odisha government is not supporting in land allocation for Khordha LPG bottling plant.”

Shree Jagannath Temple Trust (SJTT) has offered IOCL a land of 32 acres on outright sale basis in March 2016 for constructing a new LPG bottling plant at Somnathpur village in Khordha district. Based on the demand letter by SJTT dated 16th March 2017, IOCL deposited the entire amount of Rs 28.8 crore on 30th March 2017. The demarcation of the land was carried out in December 2017 by the SJTT authorities, and a copy of the same was handed over to IOCL, he wrote in the letter dated December 28.

However, the land has not been handed over to IOCL so far, he mentioned.

Despite the request by the IOCL State head to Principal Secretary of Law department and Chief Secretary for approving the proposal for entering into sale deed at the earliest, the land is yet to be allotted for the plant.

Meanwhile, IOCL has obtained necessary environment clearance on 5th November 2018 and the project has also been cleared under Single Window Clearance on 6th December 2017 from Government of Odisha. IOCL is prepared to commence the project execution work immediately after receipt of necessary permission for sale deed.

An estimated investment of Rs 150 crore is getting delayed for past 19 months, even after full and final payment made by IOCL for aforesaid land, Pradhan wrote.

He said that project will benefit all the LPG customers as it will reduce the transport charges of LPG cylinder from bottling plant to the distributor.

LPG is a commodity used by common people of the State. The action on the part of State Government and the attitude of non-cooperation is ultimately affecting the common people of the State, the letter read.

Notably, there are four LPG bottling plants by Oil Marketing Companies (OMCs) in Odisha. The firms have already invested Rs 100 crore for augmenting the existing bottling capacity per annum from 1.5 crore cylinder in 2014 to 3 crore cylinder in 2018. Three new LPG bottling plants are also underway at Balangir, Rayagada and Khordha with a total cost of Rs 403 crore and one LPG import terminal at Paradip with a cost of Rs 690 crore.

Besides, IOCL has already commissioned eastern India’s first LPG pipeline with a cost of Rs 365 crore (Paradip-Balasore-Haldia) in Odisha to supply bulk LPG in a safe, cost-effective and hassle-free manner to IOCL Balasore LPG bottling plant.