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IOC plans to increase LPG production in Northeast by 53%, to 80 mn cylinders by 2030

LPG production in Northeast

IOC to increase LPG production in Northeast to 80 million cylinders

LPG production in Northeast – To accommodate the region’s expanding demand, PSU giant Indian Oil Corp (IOC) is constructing three new factories in the Northeast to raise its LPG bottling capacity by roughly 53% to eight crore cylinders yearly by 2030. 
 
G Ramesh, IOC Executive Director (IndianOil-AOD), stated the proposed new LPG bottling plants will be built in Mizoram, Meghalaya, and Arunachal Pradesh at a cost of Rs 325-350 crore, using a mix of wholly-owned and public-private-partnership (PPP) models. 
 
“In order to fulfil the increased demand for LPG in the Northeast, we are expanding our bottling capacity. We plan to have an annual bottling capacity of eight crore cylinders by 2030, based on a demand of seven crore units “According to PTI, he stated. 
 
According to Ramesh, Indian Oil-AOD, the company’s Northeast division, has an annual capacity of 5.23 crore LPG cylinders at its nine plants, with capacity utilisation of 5.11 crore units.

IOC – LPG Production

“Over the next two-three years, IOC and the private partner would invest a total of Rs 325-350 crore in this expansion project. For the Arunachal Pradesh plant, we’re searching for a private partner “Added he. 
 
The Mizoram unit would be brownfield, while the Arunachal Pradesh and Meghalaya units will be greenfield, according to the official. 
 
“We had two units in Arunachal Pradesh’s Kimin and Mizoram’s Mualkhang. These older factories were smaller and didn’t meet today’s safety standards. As a result, these factories have been shut down, and other, larger plants will be built in their place “Ramesh elaborated. 
 
He stated that the Mizoram factory, which is currently in the planning stages while bordering lands are acquired, will have a daily capacity of 30,000 cylinders and will cost around Rs 150 crore.

LPG production in Northeast to increase

“The facility in Meghalaya will be built on a greenfield site in Umiam. We would invest Rs 75 crore, and the factory will be operational by December 2023, with a daily production capacity of 7,000 cylinders “According to the spokesman, 
 
The company is looking for property to build a new plant in Arunachal Pradesh because the current location is insufficient for a modern and larger facility. 
 
“We’re also in talks with the state government of Arunachal Pradesh and a potential partner who wants to build and own the plant. This unit is expected to cost roughly Rs 100 crore, which will be paid for by the partner with technical assistance from us as part of a long-term arrangement “Ramesh expressed his thoughts. 
 
Assam currently has six operating units, one each in Manipur, Nagaland, and Tripura. 
 
One facility in Assam and another in Tripura were recently established. According to Ramesh, these two plants have begun trial production but have yet to be officially commissioned. 
 
“The Agartala plant is a greenfield project with a capacity of two crore cylinders per year. Tripura’s demand may be met entirely by this facility until 2040 “Ramesh expressed his thoughts. 
 
In addition, the IOC-AOD is investing Rs 40 crore to expand the existing capacity of its Bongaigaon LPG plant in Assam to 120 thousand metric tonnes per annum (TMTPA) from 60 TMTPA. 

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