IOC launches work on terminal in Malkapur

Indian Oil Corporation (IOC) has launched work on a new petroleum product terminal in Malkapur, near here, that, on commissioning, will help it pump more products into the Telangana market.

A crucial component of the ₹3,800-crore cross-country Paradip-Hyderabad pipeline project that the oil company is implementing, the terminal at Malkapur, in Nalgonda district, will have a storage capacity of 180,000 kilo litres. It is estimated to entail an investment of ₹611 crore.

“We are through with all approvals, licences,” Executive Director and State Head of Indian Oil Corporation for Telangana and Andhra Pradesh R. Sravan S.Rao said in response to a query on whether land conversion approval that was taking time had been received for the terminal. He expected work on the terminal to get over in 18-24 months.

For the over 1,200-km pipeline, this, however, would mean a wait until such time to become operational in Telangana, a State where it will run for around 150 km. The product terminal in Malkapur will be the terminating point of the pipeline.

Mr. Rao, who addressed media here on Wednesday, said the Paradip-Hyderabad pipeline was nearing completion.

“Most of the pipeline has been constructed, except a few metres here and there,” he said, adding the plan for now was to bring products up to Vijayawada.

From Paradip, where IOC has a 15-million-tonne refinery, to Hyderabad, the pipeline will connect Berhampur in Odisha, Achyutapuram near Visakhapatnam, Rajahmundry and Vijayawada in Andhra Pradesh, before reaching Malkapur.

The pipeline, with a capacity to handle 4.5 million tonnes, will traverse through 16 districts in the three States.

At present, the major product input for IOC in Telangana is through the Vizag-Vijayawada- Secunderabad Pipeline (VVSPL) for white oil products – petrol, diesel, kerosene and Aviation Turbine Fuel.

The company caters to the Telangana market through a terminal in Cherlapally, a bulk depot in Ramagundam and a network of over 1,100 petrol pumps.

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