After Chotu, Munna LPG cylinders to hit North East markets soon: Indian Oil

After Chotu', Indian Oil is all set to launch Munna' in the North Eastern region soon, a top official said on Friday.

The PSU is also focusing on infrastructure development in the region, including setting up LPG bottling units in all the seven states, he added.

Addressing a press conference here, executive director and state head, IndianOil, Assam Oil Division, G Ramesh said, After introducing the 5-kg LPG cylinder Chotu' in NE last year, we will also be launching the 2-kg cylinder Munna' soon.

Ramesh said bottling units for Munna' will be launched in Tripura and North Guwahati soon.

These lightweight LPG cylinders are catering to migrant population in urban and semi-urban areas who do not have local address proof, people with lower gas consumption and commercial establishments with limited space. Munna' will be particularly helpful for people in hilly areas as it will be easy to carry, he added.

The per kg price of Munna' is nearly same as the regular domestic cylinder, while non-domestic Chotu' (free trade LPG cylinder) is a little higher.

Ramesh said the response for Chotu' has been good in the region, with about 60,000-65,000 units sold last fiscal and another 15,000 units in the first quarter of the current financial year.

IndianOil currently has 871 LPG distributorships in the North East, with an active customer base of 91 lakh out of the total LPG customer base of 112 lakh in the region, which is approximately 81 per cent of the total LPG connections covering the highest market share of 87 per cent in the seven states.

Ramesh said in order to have LPG bottling infrastructure in all NE states, projects are being planned in Meghalaya and Mizoram the two states which didn't have such facilities so far.

A new 30 TMTPA (Thousand Metric Tonnes per annum) LPG bottling plant at Umiam, Meghlaya, at an approved cost of Rs 75.54 crore is currently under execution, and there is plan for a new 30 TMTPA bottling plant in Mualkhang, Mizoram, at an estimated cost of Rs 193 crore, he added.

There are plans for setting up of new depots (Greenfield POL locations) in Umran, Meghalaya, and Sihhmui, Mizoram, to provide oil security for the states at estimated costs of Rs 500 crore and Rs 900 crore, respectively, Ramesh added.

On other infrastructural development in NE, the top official said work has commenced for green field petroleum, oil and lubricant (POL) depot at Sekerkote in Tripura, for which the IOCL board had approved Rs 656 crore.

Expansion of Betkuchi Terminal in Guwahati is being undertaken with approved cost of Rs 277 crore and approval is in process for revamping project at Dimapur Depot at an estimated expenditure of Rs 231 crore, he said.

Plans are also afoot for wagon receipt facilities at Imphal Depot at an estimated cost of Rs 300 crore, the official added. PTI SSG

IndianOil also plans for capacity expansion of its refineries at Guwahati and Digboi with project costs of Rs 412 crore and Rs 768 crore, respectively. Expansion of Bongaigaon refinery is also envisaged under North East Hydrocarbon vision 2030 and currently land acquisition process is under progress, Ramesh said.