HPCL gets green nod to set up Rs 136 crore LPG plant in Bihar

New Delhi: State-run HPCL on Friday received the environment clearance for setting up of a new LPG plant with bottling and storage facilities in East Champaran, Bihar that will entail an investment of Rs 136.4 crore.

This will be the third LPG plant in the state. Currently, Hindustan Petroleum Corporation Ltd (HPCL) has only two LPG plants in Bihar at Patna and Purnia with a bottling capacity of 50,000 cylinders per day.

As per the proposal, the HPCL wants to construct mounded storage vessels with a capacity of 1,050 tonnes and bottling capacity of 120 tonnes per annum in an area of 30 acres in Panapur and Kubeya villages in East Champaran district.

"The Union Environment Ministry has cleared the HPCL's proposal and granted the environment clearance to the company with some conditions," a senior government official said.

The purpose of the project is to increase rural penetration of bottled LPG cylinders in Bihar in a safe and environmental-friendly way.  The cost of proposed LPG plant is estimated to be Rs 136.4 crore, the official added.

At present, the HPCL is meeting the demand through sharing filling capacity from other LPG bottling plants/private bottlers.

The government's aim is to increase the LPG penetration to 75 per cent by addition of 5.5 crore new LPG connections till 2019-20.