State-owned Indian Oil Corporation (IOC) has decided to establish its third Liquid Petroleum Gas bottling plant in the state in Amritsar area so as to cater to growing demand for LPG in Punjab.
"In principal, it has been agreed to establish another LPG bottling plant in the state, for which two alternative sites of 40 to 60 acres have been identified and a proposal sent to the Headquarters for final clearance," chief plant manager of IOC's LPG bottling plant here, Major SS Nagi (retd) told Hindustan Times.
After getting clearance regarding the purchase of land, about Rs 60 crore would be spent to set up the bottling plant in Amritsar to ensure supply of at least 11 lakh more LPG cylinders per month to Punjab's consumers, He added.
Even the future demand of LPG cylinders would be catered to through the upcoming plant, as on an average 3.2 lakh new connections are issued every year by the company in Punjab circle comprising Punjab, Himachal Pradesh and Jammu and Kashmir, Nagi said.
Regarding the use of LPG as vehicular fuel, Nagi revealed that 5% growth was registered in sale on this count last year and it was expected to multiply further in the current fiscal, because of reduction of LPG fuel price by Rs 5.57 to make it just about Rs 50 per litre.
Currently, the IOC operates 14 LPG fuel stations in Punjab, including in Chandigarh. The process to open seven more LPG filling stations was on to strengthen availability of LPG fuel in the state, Nagi said.
He also said that the illegal use of domestic LPG gas in vehicles needed to be tackled by the state government.