Financial Daily from THE HINDU group of publications
Wednesday, Jun 01, 2005
Financial Daily from THE HINDU group of publications Wednesday, Jun 01, 2005 |
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Corporate
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Environment Phasing out polluting vehicles — IndianOil Petronas to gain from Bengal Govt's move Pratim Ranjan Bose
Kolkata , May 31 AFTER a prolonged period of low demand growth in West Bengal and the eastern region, IndianOil Petronas Pvt Ltd (IPPL) is now expecting to get on to a high growth path in the current year. This opportunity has been provided by the West Bengal Government's recent initiative to phase out pre-1990 commercial vehicles from city limits by December 31, excepting those that will be converting to cleaner fuel. Since CNG is unlikely to be available in the region, the State Government is promoting the cause of auto LPG. The initiative has brought cheer to IPPL. The Rs 180-crore joint venture between Indian Oil and Petronas of Malyasia was created to tap opportunities in the LPG market. Apart from setting up its import terminal at the Haldia port, the joint venture had also set up a 15,000-tonne auto LPG manufacturing capacity. The only other company that has an auto LPG manufacturing capacity in the region is Haldia Petrochemicals Ltd. Till now, however, IPPL has seen only limited use of its auto-LPG manufacturing capacity as none of the States in the region have enforced the use of the fuel. As a result, the company has had to survive on terminaling business for other oil companies. IPPL sources said the company had promised the State Government that it would supply 15,000 tonnes of auto LPG to Kolkata out of an estimated requirement of 30,000 tonnes. Overall, the company is expecting a business gain of close to Rs 40 crore every year by supplying auto LPG to different oil marketing companies or through direct marketing. Since it uses imported feedstock for manufacturing LPG, the company has also received clearance from the Union Ministry of Petroleum and Natural Gas to make the requisite imports.
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