The project has been set up by Chennai Petroleum Corporation Ltd (CPCL), a subsidiary of Indian Oil Corporation. He also laid the foundation stone for CPCL’s proposed Rs 31,500 crore grass root refinery.
The project was dedicated by the Prime Minister via video-conferencing.
The event marks another significant milestone towards the Energy Aatmanirbharta for the nation.
The Chief Minister of Tamil Nadu and Union Minister for Petroleum & Natural Gas and Steel, and other Members of Parliament will also participate via video-conferencing.
On a day when petrol crossed the Rs 100 mark, Modi on Wednesday said the middle-class would not have been burdened if the previous governments had focussed on reducing India’s energy import dependence.
Without referring to the relentless increase in retail fuel prices, which are linked to international rates, he said India imported over 85% of its oil needs in the 2019-20 financial year and nearly 53% of its gas requirement.
“Can we be so import dependent? I don’t want to criticise anyone but I want to say (that) had we focussed on this subject earlier, our middle-class would not have been burdened,” he said at the function to inaugurate oil and gas projects in poll-bound Tamil Nadu.
Price of petrol crossed the Rs 100 per litre mark in Rajasthan after fuel rates were hiked for the ninth day in a row. Since India imports majority of its oil needs, retail rates are benchmarked to international prices, which have spiralled in recent weeks.
Modi said his government is sensitive to concerns of the middle-class and so has focussed on raising share of ethanol mixing in petrol.
Ethanol extracted from sugarcane will help cut imports as well as give farmers alternate source of income.
India, he said, is looking to cut energy import dependence as well as diversify its sources to reduce risks.
The focus now is also towards using renewable sources of energy, which will by 2030 form 40% of energy generated in the country, he said.
Also, the government is working towards raising the share of natural gas in the energy basket to 15% from the current 6.3% and is committed to bringing it under the Goods and Services Tax (GST) regime to eliminate cascading effect of multiple taxes, he added.
The Ramanathapuram-Thoothukudi section (143 km) of the Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin Natural Gas pipeline (ETBPNMTPL) has been laid at the cost of about Rs 700 crore.
It has generated 170,000 man-days of employment. The pipeline will use the gas from ONGC fields and deliver indigenous natural gas as feedstock to Southern Petrochemical Industries Corp Ltd (SPIC) at Tuticorin and other industrial/commercial customers and CGD GAs.
The Gasoline desulfurisation unit at CPCL, Manali, has been constructed at a cost of about Rs 500 crore, generating 18,000 man-days of employment. The unit will produce low sulphur (less than 8 ppm) environment-friendly gasoline, which will reduce emission and contribute towards a cleaner environment.
The grass-root refinery with nine million tonnes per annum (MMTPA) capacity is to be set up at Nagapattinam by a JV between IndianOil and CPCL at an estimated project cost of Rs 31,500 crore.
This project will generate about 5 million man-days in the execution phase. The refinery will produce MS and Diesel meeting BS-VI specifications and Polypropylene as a value-added product. It anticipates about 80 per cent indigenous sourcing of materials and services.
These projects would bring substantial socio-economic gains and will aid development of transport and communication facilities, education facilities, downstream petrochemical industries, ancillary and small-scale industries.