Nagpur To Get Rs 500 Crore Petroleum Terminal By Year 2020

An MOU was signed between the state and IOT Infrastructure And Energy Services.

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On Sunday, an MoU was signed by the state government with the IOT Infrastructure and Energy Services (IOT) for the installation of a petroleum terminal of value Rs. 500 crores. The terminal will be set up in Borkhedi, a village which is 40kms away from the city.

The said MOU was signed at the Magnetic Maharashtra conference which was held in Mumbai to attract investors towards the state for investment opportunities.

The draft of the project includes a mega inland terminal which will be used to stock up the supplies of petroleum products of state-owned Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPCL).

President of Terminalling of IOC, Rajesh G. said, “The project would indeed provide a much-needed fillip to the ever-increasing energy demands of eastern Vidarbha, and the benefits of our state-of-the-art technology would benefit our customers with enhanced safety and efficiency.”

IOT is a joint venture initiative of IOC and Oiltanking GmbH (Germany), the latter being world’s topmost independent tank terminalling companies.

Nagpur will become the second city in India after Raipur to stock petroleum products of more than one company.

Rajesh said, “The project challenges the established norm that oil terminals are captive assets serving only their parent company. The new terminal would be an ‘Inland Common User Terminal’, storing petroleum products for IOC and HPCL.”

He further added that the present terminals of both these companies are situated in the Khapri area. If they’re relocated, it could benefit the Railways and Multi-modal International Hub Airport’s development plans at MIHAN.

The suggested terminal will be of throughput capacity of 1.4 million kilolitres which will provide services to both these state oil companies. The fuel to these terminals will be supplied through rail tank wagons. It will be distributed to the districts of Nagpur, Bhandara, Gondia, Gadchiroli, and parts of Wardha by tank trucks.

Currently, 15 terminals of IOC are functional in India by means of various business models.

Information source: timesofindia

Title image source: incoreinsightlytics

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