lndianOil

lf\4-llll CONFIDENTIAL

q;t~+IG~: P/218 ED(PJ), PL.Divn. m:ff TO-----------­AGENDA ITEM NO. ------

573 rd Board Meeting ~cfij~ Meeting Held on

lOth February, 2011

+++++++++++++++++~+++++++++++++++++++++++++t SUBJECT

~ Proposal for Investment Approval of Paradip­Haldia-Durgapur LPG Pipeline

ACTION BY

f~mm-~ mt{ciJ~ ~ .. .. GM(P J-Sy~ Gas)* ipelines Divn. :

4H<fct'd MINUTES

The Board was informed that the Project Evaluation Committee had reviewed the item and recommended the same to the Board for consideration and approval.

Shri Sudhir Bhargava, Chairman· of Project Evaluation Committee infotmed the Board that the Committee has recommended the proposal after considering the observations made by Project Appraisal Group and response made thereon by the Pipelines Division particularly on issues relating to demand projections, alternate use of pipeline, availability of gas etc.

With the above, the Board approved the item and passed the following resolution :-

"RESOLVED THA 'f the approval of the Board be and is hereby accorded for laying Paradip-Haldia-Durgapur LPG Pipeline alongwith the associated facilities for transportation of LPG from Paradip and Haldia to the LPG Bottling Plants at Balasore, Budge Budge, Kalyani & Durgapur at an estimated cost of Rs.913 crore incl~ding a foreign exchange component ofRs.l62 crore at August, 2010 price level."

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1 !.tfaR-fj"q COPY TO '\ n:L : ED(F~elines Divn. ·- c~~-~·

DATED: : 16'11 Febntary, 2011 '"' . ~~- rf"l!\110/\1\IV C:!=r'"OC:T/\OV

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INDIAN OIL CORPORATION LIMITED

AGENDA FOR THE BOARD MEETING TO BE HELD ON lOlli FEBRUARY. 2011

ITEM NO.P/218

Sub: Proposal for Investment Approval of Paradip­Haldia-Durgapur LPG Pipeline

The proposal for investment approval of Paradip-Haldia-Durgapur LPG Pipeline · was put up for consideration of the Project Evaluation Committee at its meeting held on 24th January, 2011. The Committee deliberated the proposal and desired that the observations of the Project Appraisal Group be examined and response thereof from the Pipelines Division be submitted to the Committee at its next meeting.

Accordingly, a presentation was made to the Executive Committee of Functional Directors on_ 1st February, 2011 wherein the response to the observations of the PAG group was subm.itted.

An agenda item on the subject matter alongwith minutes of the Executive Committee of Functional Directors is attached herewith for consideration of the Board subject to the recommendations of the Project Evaluation Committee at its meeting scheduled on 10th February, 2011.

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11\'DIA.N OIL COP...PORATION LTMITED (PIPELI!'<'ES DIVISION)

AGENDA FOR THE BOARD MEffiNG TO B_E HELD ON I 0 - 0 2.- 2£> \ \

Item No ... ~ ....... ~.::-............ _

Su~: PROPOSAL FOR iNVESTMENT • APPROVAL OF P ARADIP-HALDIA­

DURGAPURLPG PIPEL~

~.0 JNTRODUCUON

1.1 Indian Oil presently has LPG bottling plants at Balasore & Jharsuguda in the state of Orissa and at Budge Budge, Kalyani, Durgapur, Ma,dah and Raninagar in the ~tate of West Bengal, The LPG requirement of these bottling plants is presently being m~t from Haldia and Bamunl refineries as well as Indian Oll Petronas Private Limit~d (JPPL) throug& iniport at Haldia. The LpG to all the above pia~~ Is pr~sently transported by

road.

1.2 Indian Oil is constructing a 15 MMTPA grass root refmery at Pamdlp for which the investment approval was acicor:ded in February 200~. After ~ommissioning, this ·refinery would·providc another source of supply of LPG. ·As per tho configuration of Paradip refinery cooside~. In the approved DPR. It_ has been envisaged that ex-Pamdip, the LPG availabiUty would be about 520 TMIPA. which would be evacuated through Road, Rail and Coastal mode. Tho latest supply-demand scenario of LPG indicated that the entire LPG production of Paradip refinery would be consumed within tho Basten Region Le_. in tho states of Orissa, Jharkband and W.B. In view of the above. it has beef' decided to examine feasibility of evacuation of LPG ex-Paradlp through pipeline.

1.3 MoP&NO baS advised to cqver 75%. of the popul~tion with LPG connections by the year 2014-IS with emphasis on rural nwtctln$. The average growth iate in tho d~and for LPG during the period 2016-11 to 2013-14 Is expected to be higher than 8%. With · growing demand of LPG and its availability, the transportation requirements are ~lso increasing. ·Pipeline mode of transportation would ensure . cost-effective and unintemtpted transportation ofLPG to various· LPG plants, which arc at quite a distance from Paradip and Haldia.

1.4 A scheme for laying Pamdlp-lJaldia-Durgapur pipeline for ~on of I.PO from Paladip & Haldia refineries of IOCL to the LPG bottling plants of IOCL at Balasore. Budge Budge. Kalyani & Durgapur was accordingly drawn and a Feasibility Report Was prepared. . . .

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L.S Vide Agenda Itein No. P/210 dated 28.5.2010, the Board accorded t• Stage approval t-o the proposal and approved an amount oft5.5 crore for initiating pre-projeCt activities so as to facilitate preparation of Detailed Feasibility Report (DFR) for the proposaL

1.6 Accordingly, a DFR has been prepared, which broadly deals with the need and justification, system configuration, cost, viability, implementation methodology and other details in respect of· laying Paradip-Haldia-Durgapur pipeline for transportation of LPG from Paradip & Haldia refineries as well as from lPPL Haldia to the IOCL's LPG bottling plants at Ba(asore, Budge Budge, Kalyani & Durgapur. The DFR is being submitted seek.in~ investment approval of the Board. •

2.0 NEED AND JUSTIFICAtTION

2.1 LPG Demand Scenarios

2.1.1 Planning Cell ofMarketing Division has worked out the long term demand for LPG taking into consideration the following factors. !

•!• Economic growth outlook of the country.

•!• Pa~tial deregulation of transport fuels by the Government to contain the subsidy burden.

•!• Doubling of availability of domestic natural g~s in next few years.

•:• Building up of LNG handling·capacity at Koehl and Ratnagiri.

•!• Laying of gas pipelines in southern belt covering Tamil NadiJ, Kamataka, Kerala and Goa:

•!• · • Government focus of increasing penetration of LPG from present level of about 50% to 75% with special emphasis on Rural sector.

•!• Impact of city gas distribution network on demand of other products Jike Naphtha, LPG, MS, HSD etc. for Industry as welt as for retail customers

Accordingly, Planning Cell of Marke~ing Division has worked out following growth rate iri the demand of LPG fo~ TOCL. · ·.

Year 10-11 ll-12 12-13 13-14 14-15 15-16 16-17 21-22 26·27

Growtla (%) 8.63 8.60 8.55 8.50 8.47 7.82 7.20 4.71 2.99

2.2 LPG Supply Scenarios

2.2.1 The 15 MMfPA Paradip refinery is presently under implementation and the production of LPG at Paradip refinery is expected to be about 520 TMTPA.

2.2.2 The production of LPG at Haldia refinery is expected to be about 300 TMT,PA.

2.2.3 Ind~ Oil Petronas Private Limited (IPPL) is having an impo.rt facility at Haldia fo:r impo~ of LPG. The throughput handled by lPP~ Haldii1 import facilities in last 3 years Is about 600-650 TMn>A.

About 60% ~roduct handling by IPPL is on IOCL account. With proposed LPG pipeline and with product sourcing fi·om Haldia & Paradip refineries, supply demand optimization study.Indicates that there would still .be need to import LPG at l PPL terminnl. -

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~.3 Throughput Projections fo~ the LPG pipeline (2014-15)

z_.3.1 The throughput of Paradip-Haldia section in 2014-15 .... is projected to be about 430 TMTPA ex-Par~ip. As this 5ection has only one source of LPG supply i.e. Paradip refinery. as long as there is no change in the production pattern of Paradip refinery or increase in the LPG availability at Paradip, the volumes ex-Paradip is likely to be around 430 TMTP A.

z_.3.2 The throughput of Haldla-Durgapur section in 20 14-15· is projected to be about 826 TMTPA, out of which, 376 TMTPA would be for nodal movement from Kalyani and Durgapur. ·Details of the throughputs of various sections; inputs through various sources i.e. Paradip refinery, Haldia refinery & IPPL's terminal and tho details of nodal movements & filling at various LPG bottling plants are given in Annexure-I.

Haldia-Durgapur section would have niore ihan one source of supply of LPG viz. Paradip refinery. Haldia refinery and IPPL Import terminal. The throughput of thJs

· . pipeline section would gro\v in line with the growth in _the demand as per the growth rate indjcate~ in ·para 2. 1.1 and the additional demand would be met by lncreasin g imPQrt through IPPL terminal In case there is no increase in the LPG production at these refineries. Accordingly, the long term projected ~hroughput for this section wouid be as under.

Pipeline Section Throughput Projections (TMTPA)

2014-15 2016-17 2021-22 2026-27

Haldia-Durgapur 826 . 955 1258 1509

2.3.3 It is p~rtinent to mention here that while some of the bottling plant capacities are projected to be saturated during 2014-15 itself, tht: demand in the attached markets would continue to increase. Therefore, it would be required to either stretch the capacities of the existing plants through technological upgradation or setting up new bottling plants In and around the existing markets to meet the increased LPG demand as req"!lired. Therefore, the pip~llne facilities need to be designed considering the long tenn throughput projections.

2.3.4 The study carried out by CO(Optimisation) suggests that nodal movement from Durgapur would not only be to the bottling plants in West Bengal but also to bottling plants in Bihar,_ Jharkhand and Uttar Pradesh.

2.3.5 For the purpose of future projections, LPG group has opined that . the throughput projections ex-Haldia be worked out considering only 50% of the projected growth rates as given in para 2.1.1 with provisions for augmenting the pipeline capacity further as and when projected demand materialises. The long term projected throughput for Haldia~Durgapur section, considering 50% of the projected growth rates, have been worked out and considered for pipeline infrastructure planning. Accordingly, the long term projected throughput for Haldia-Durgapur se<?tion would be as under.

~- ... --- · . . --·-·· . P!veli!!e Sel!tion Throughput Projections (TMTPA) · · ·- .. .

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2014-15 J 2016-17 I 2021-22 J 2026-27 Haldia-Durgapur 826 J 890 1023 I 1121

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:;:2.4 Justification for pfpellne mode of transportation

::;2.4.1 Considering projected volumes, the task of transportation of.LPG from Supply point t<> the LPG bottling plants can be .effectively accomplished by laying a cross country LPG pipeline. At present, there are three cross country LPO PipeUnes in operation in. India. Two of these pipelines, Jamnagar-Loni and Vizag-Cherlapally (Secunderabad) belong to GAIL. Th~ third pipeline i.e. Panipat-Jalandhar LPO pipeline belongs to IOCL. It has been established world over that pipelines are superior means for transportation of petroleum products Compared to . other modes viz. rail, road, tankers etc. due to the i (" Inherent advantages like reliability, economy, safety, flexibility, low energy consumption, low transit losses and negligible impact on environment. Qx!structlon of new pipelines would also provide relief to other modes of transportation for movement of essential commodit~es and passengers. •

As indicated in the approved DFR. on Paradip refinery, coastal evacuation of LPG was planned ex-Paradip refinery. However, now it is planned to lay a LPG pipeline ex:­Paradip refinery in place of coastal evacuation as envisaged in the approved DFR of' Paradip Refinery. Refineries Division has estimated that there would be a ~t saving of' about 'Q27 crore in the CAP EX and ~3 crore per year in OPEX on account of.deJetlon of refrigemted LPO storage and allied tanker loading facilities at ParB;dip and addit,ion of facilities required for transfer of pressuri~d.LPG to pipeline terminal at Paradlp.

In vie~ of the above, it Is proposed to lay Paradip-Haldia-Durgapur LPG pipeline for tra!Jsportation ·of LPG from Paradip & H!\ldia refineries as well os from JPPL term ina J at Haldia to the LPG bottling plants at Balasore, Budge Budge, Kalyani & Durgapur, thereby, reducing carbon emissions which may enable IOCL to claim carbon ~redits. Nodal movement to other LPG bottling plants in the states of Orissa, Jharkhand.- West Bengal, Bihar and Uttar Pradesh would be UJtdectaken .froin Balasore, Kalyani and Durgapur bottling plants.

2.4.4 Considering the production ofLPO at Haldia & Paradip refinery and the requirement o f' bottling plants to be fed by this pipeline, it is proposed to design the pipeline for a capacity of 0.50 MMTPA in Paradip-Haldia section and 0.85 MMTPA in Haldia­Durgapur section with 2 shift operation per· day basis u~der hc;art cut op~ration philosophy. To take care of additional den1and, increase in throughput requirements in the future would be met either by operating the third shift and/or augmentation of the pipeline system.

3.0 PROJECT DESCRIPTION

3.1 Pipeline route

3.J.I The proposed pipeline would originate at Paradip. The Paradip-Haldia section would be laid mostly in the same ROW of existing Paradij,.Haldia crude oil pipeline. For tne pipeline section from Haldia to Rajbandb, the existing ROW would be used to the extent possible. The terrain along the pipeline route is mostly flat and plain, which includes stretches of low lying area in between. There is no rocky terrain along tbe proposed pipeline route.

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3.1.2 For providing pipclina ro;;nectivlt-; to LPG boH!!ng p!~rrt at R!l(fge-Budge, e~istin.g Raghudevpur-Bttcfge Budge section ofHMRPL, which is presently idle, would bt. used. This wou'Jd al~ require laying o( about f2 km pipeline .from the tenninal at Budge­Blidge to the LPG bottling plant at Budge-Budge, through new ROW.~

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:3.1.3 For providing pipeline connectivity to the bottling plant at Kalyani, a branch pipeline of about 40 km would be laid. from Belmuri (chalnage about 509 km ex-Paradip). This branch would traverse thro~gh new ROW.

3 .1.4 To provide connectivity to bottling plant at Durgapur, about 3 lan pipeline beyond Rajbandh would be laid in new ROW. ·

.3.2 System configurntion

3.2.1 The proposal of laying Paradip-Haldia-Durgapur branch pipeline system broadly involves the following activities.

• Installation of pump station at Paradip and HaiQia . • • Installation of two mounded bullets at Haldia, each of about 1000 MT capacity for

line balancing I operational requirements.

• Laying of 10.75" 00, 668 km pipeline from Paradlp to Durgapur including branch pipeline to Kalyani.

• Laying of Ii).i5" OD, about 20 km long pipeline from Ha,ldia refinery to prop~sed pump station at Haldia. ·

• Laying of 10.75" OD, about 2 km long pipeline from IPPL terminai at Haldia to · proposed pump station at Haldia.

• Laying of 12.75" OD, 12 km pipeline from old POL terminal at Budge Budge to Budge Budge LPG bottling plant along with use of about 8 km of 12.75" OD branch pipeline on Haldia-Mourigram-Rajbandh pipeline (HMRPL) to Budge Budge~ which has become idle due to clo~ure of Marketing terminal at Budge Budge.

• Installation of scraper station at Belmuri (chainage 509 km ex-Paradip). A 40 km branch pipeline to Kalyani would originate from this point.

• Installation of delivery facilities at Balasore, Budge Budge, Kolyanl and Durgapur.

Schematic flow diagram of the pipell(le system is attached as Annexure- II.

3.3 Additional facilities at Haldla Refi~ery, LPG bottling plant at Durgapur nnd IPPL Haldia

3 .3.1 It is required to provide 2 km pipeline, two transfer pumps along with metering facilities at Haldia refinery. Necessary proyisions have been kept in the cost estimates for dtese facilities.

3.3.2 The existing bottling plants at Balasore, Kalyani and Durgapur, from where nodal movements of LPG are envisaged, have road unloading facilities which \Vould become redundant once ·the pipeline system becomes operational. The existing tank lorry decantation bays would be converted into loading bays with minor modifications·. It .would require additi?nal pumps only at Durgapur, where nodal movement of about 358 TMTPA is envisaged for which provisions have been kep.t in the cost estimates of this proposal. ·

3.3.3 Provisions of LPG ·metering· system, -ROV··and-necessary. instrumentation .etc. at the IPPL end have been kept in the cost:esiimales. Othei' modifications r~quir~•tnt !PPL

• for transfer of signals for levels etc., including modification in the pipeline manifold fc,J'

facilitating the pumping, would be undertaken by JPPL. No additipnal pumps !)re envisaged at IPPLfor transferring LPG to pipeline termf~al at Haldia. •

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3:4 Implementation methodology

3.4.1 IOCL (Pipelines Division) possesses ·adequate mq)ertlse in tho field of design and engineering, procurement of materials and supervision of constrUction activities of such projects including teleconn!lw•icatfon and telesupervisory (SCADA) systems. It Is, therefore, proposed that execution of the project will be done by IOCL as per conventional methodology.

3.5 Stat!'tory clearances

3.5.1 Suitable action will be taken for obtaining MoE&F clearance and other statutory ~ieatimces for the proposed pipeline system from the concerned authorities, as applicable.

3.5.2 The Petroleum and Natural Gas Regulatory Board (PNGRB) Act, 2006 was notified by the Government vide Notification No. 19 of2006. As per requirement, PNGRB would be requested for grant of necessary authorization to ~is proposed dedicated LPG pipeline of IOCL at an appropriate time. ·

3.6 Construction schedule

3.6.1 The proposed scheme is expected to be completed in a period of about 30 months after receipt of statutory clearances.

3.7 Manpower requirement

3.7.1 The manpower requirement during construction phase would be about 100 and that for operation of the pipeline excluding 9 Line Patrolmen (LPM) would be around I 01. The requirement of manpower is expected to be met through lnterital deployment as well as by induction of competent persorineJ. The requirement of LPM for new portion or ROW is envisaged to be outsourced through DOR approved security agencies.

4.0 CAPITAL COSTS

4.1 The complete pipeline system from Paradip to Durgapur and the associated facilities is: estimated to cost ~913 et·ore, including a foreign exchange component"of'{162. crore, at: August 2010 price level. The capital cost also includes th~ costs towards provision oE' facilities at Haldia (Refinery & IPPL facilities) and LPG bottling plant at Durgapur. Details of the capital cost are given in Annexure-lli.

5.0 OPERATING COSTS

5.1 The operatin~ cost of the pipeline system includes the cost of power required for­running the mainline pumping wdts, utilities, consumables, salaries & wages,.. administrative ovedteads, repair & maintenance etc. The operating cost ·for the desig111. capacity of 0.5 MMTPA in Parad'&p-Haldia section and 0.85 MMTPA In Haldia­Durgapur section Is estimated to be 'f32.40 crorelr.ear at August 2010 price level.

6.0 F1NANCIAL ANALYSIS

6.1. -· The capital cost of the project is considered to be financed through internaL resou~es/comrnerciat borrowings. ;For the purpose of financial analysi~, ··Debt:Equlty' ratio of J :1 has been considered wi~h interest@ 11.75% per annum and repayment in~ equal inst~lments with one year moratorium from the date of commissioning, Requirement of working capital will be niet ~ougb internal resources.

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6.2 Financial analysis for the pipeline system has been canied out coasidering the cost o-c the Paradlp-Haldia·Durgapur LPG pipeline system along\vitb the associated facilities and corresponding corporate savings considering the throughput of .LPG required to be transported from Pamdip and Haldia to different bottling plants.

6 .2.1 Corporate Savings

CO(Optimisation) has estimated the annual· savings as ~101.98 crore/year for a throughput of 430 1MTPA ex~J>aradip and· 826 TMTPA ex-'Haldia. Incremental revenue has been considered based on pro-rata Increase in throughput

6.21 Additional One Time Savings in Capex ofPDRP

Considering that the entire LPG production of Paradip refinery would be consumed within the Eastern Region and the inherent advantages of pipelines over other modes of transportation as well as the. projected savings, the facilities for pressurized LPG transfer to the pipeline terminal at PDRP for onward pumping through the proposed LPG pipeline have been included by PDRP in place of the facilities required for coastal evacuation and envisaged in the appro.ved DFR on PDRP.

The savings in th~_ approved CAPEX and OPBX of PDRP due to these changes in the approved scheme ~re estimated to bo 't227 crore and n3 crorelyeat rcspe~tively. These savings have been considered in the financial analysis.

6.2.3 Tite saving in the loading and unloading costs of road tankers for the throughput requirement of the bottling plants at Balasore, Budge Budge, Kalyani and Durgapur has been considered. The impact of transit losses in LPG movement through road tankers -vis·A·vis pipeline transportation has also been factored in.

6.2.4 The JRR in the base case works out to be . (i) 16.0% ; If pipeline throughput is considered on the basis of-50% of the projected

growth rate fn the demand.

(ii) 17.4%; if pipeline throughput is considered on the basis of 100% of the projected growth rate in the demand, that can be achieved with present pipeline configuration without any augmentation/ additional capital investment.

6.3 Sensitivity analysis bas also been carried out for-different scenari9S of cost, throughput etc. Results oftbeanalysis are tabulated below.

Case IRR(%)

Considering Considering JOO% oftlte 50%ofthe projected growth rate till projected saturatiOil of achievable

growth rate pipeline capacity

Increase in capital cost by 10% 14.5 15.9

Increase in operating cost by I 0% - 15.6 .. 17.1 Decrease in throughput/savings by 10% 14A 15.8

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. A proposal was also under consideration to shift LPG loading facilities from Haldia. Refinery to IPPL Haldia in view of the congestion of LPG ~kers in the Haldia refinery and related safety issues. This proposal envisaged laying of 1 o•• dia pipeline .from Haldia refinery to IPPL and 2x 45 MT mounded storage tanks at IPPL at an estimated cost of~ 38.5 crore.

With implementation of this pipeline proposal, which Includes facilities for evacuation of LPG from Haldla refinery, these additional facilities would not be required and this investment of ~38.5 cr<ire would be saved. Operation & Maintenance cost of these facilities would also be saved. However, this saving in CAPEX & OPEX has not been consid~red in the financial analysis. In case this saving is considered, 1RR of thi~ proposal would improve fi1rther.

7.0 APPRAISAL DY FINANCIAL INSTITUTION

7 .I A copy of the DFR was sent to M/s Industrial Development Bank of lnqia (lOBI) for appmisal. In their apprai~l report, lOBI has recommended that the proposal may be considered technically and financially ·viable .

. ~· ....... ~~ 8.0 BUDGET PROVISION (

8 .1 The project bas been included in the XI Plan. A provision of~5 crore has been kept in ~ ·the R.E. 2010-11 as well as B.E. 2011-12.

9.0 ·.As per Delegation of Authority (DOA), the proposal requires approval of the Board of Directors.

1 ().0 Project Appraisal Group (P AG) has appraised the proposal. Observations of the PAG are annexed with the Agenda Item.

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CONCLUSIONS

The LPG requirement of IOCL's LPG bottling plants at Balasore & Jharsuguda in the state of Orissa and at Budge Budget Kalyani, D"urgapur. Maldah and Rani nagar in the State of West Bengal is presently being met from Haldia and Barauni refineries as well as IPPL LPG Import Tenninal at Haldia. The LPG to aU the above plants is presently transported by road.

After commissionirig of Paradip refinery. thi~ refinery would provide another source of supply of LPG. As per the approved DFR on Paradip refinery, ·it has been envisaged that LPG would be evacuated through Road, Rail and Coastal mode. The latest supply­demand scenario of LPG indicated that the en lire LPG production of Paradip refine~Y would be consumed within the Eastern. Region i.e. in the states of Orissa, Jharkhand ancJ W.B. It has been, therefore, decided to examine feasibility of evacttation of LPG ex-Paradip through pipeline. ·

1 1.3 A scheme for laying Paradip-Haldia-Durgapur pipeline for transportation of LPG tron. Paradip & Ha~dia to the LPG bottling pla~tts at Balasore, Budge Budge, Kalyani an<J

· · · · Durgapur has accordingly been dmwn and Dctaile4 FC~!sibi_lity Repo~ has been prepared. · ·

I L4 Results of the financial analysis indicate that the proposed Paradip-Haldia-Durgapu.: LPG pipeline is viable under all the scenarios considering the ptesent hurdle rat~ o€ 13%. The pipeline will facilitate cost-effective transportation of LPG from upcoming

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Para4ip refinery and existing Haldia refinery to ditrerent bottling plants in the states of Orissa, Jbarlcha~d,· West Bengal, Bi~ar and Uttar Pradesh.

12.0 PROPOSAL

12.1 Keeping the above in vlew, it is proposed to Jay Paradip-Haldia-Durgapur LPG pipeline alongwith the associated facilities for transportation of LPG from Paradip and Haldia to the LPG bottling plants at B~lasore, Budge ]Judge, Kalyani & Durgapur ·at an estimated cost of'{913 c~ore: including a foreign exchange compon-ent of ~162 crore, at August 20!0 price level.

12.2 The proposal has been concurred by Director(f) •

• 13.0 BOARD's RESOLUTION

13.1 Board of Directors is requested to approve the above proposal and to pass the following resolutions, with or without modifications, as it may deem fit.

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"RESOl.VED THAT approval of the Board be and is hereby accorded for laying Pnradip-Haldla-Durgapur LPG pipeline alongwlth the associated facilities tor transpQrtation of LPG from Paradip and Haldla to the LPG bottling plaiJts at Dalasoa:e, Budge Budge, Kalyani & Durgapur at an estimated cost of f913 crore~ including a foreign exchange component of~162 crore, ·at August 201_0 price leveJ.n

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.Belmurl T .Point (CH..$09 KM) ,

Kalyani ~

(CM.S49KM)

From IPPL Facilities

10,75" 00

HaldtaPS (CH.~KM}

Raghudebpur T -¥oint (CHM4l<M)

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Annexllre-ll

P ARADIP-HALDIA-DURGAPUR LPG PIPELINE

CAPiTAL COST

(August2010 price level) •

(finLakh)

S. No. DESCRIPTION OF ITEM FE RUPEE TOTAL

1. Survey & Field Engineering 0 252 252

2. Land Acquisition, ROW & 0 11101 11101

t~ Crop Compensation . ,.

( 3. Mainline Pipes 11656 6844 18500

4. Mainline Materials 457 204 661

5. Ma-inline Construction 0 17149 17149

6. Pump Station and Terminal . 3976 25688 ;l9664

7. Cathodic Protection ·40 789 829

8. Telecommunication & Telesupervisory 0 3343 3.343

9 • . Project Management and 0 4694 4694

Engineering, Insurance

10. Community Development under CSR 0 100 100

Sub Total 16129 70164 .. 86293

,f:;~ 11. Additional facilities at Haldia · 0 641 ~41. ~:;,

( 12. Additional facilities at Durgapur 0 60 60

Sub Total 16li9 70~65 86994

13. Interest During Construction 0 4232 4:232

Total 16129 75097 91:226

Sny, ~ crore 162 751 ~13 .. - . .

EXCHANGE RATE: 1 US$ = ~46.69, I UK£==f73.65, .I EURO=f6l.28

cz

• •• 0 • • •••••

. s·ch·e·matic ·Flow· ··Diagram

From Paradlp Refinery Storage Tanks

PARAOIP (CH. o KM>

OurgapurOS (CH.S28KM)

LEGEND

10.75" OD

~ ..... •-•m• SCRAPER BARREL

PUMPING UNIT

(OP£AAi\'"~) PUMP\NG UNI1' tS'i'ANOB'Y)

~ VALVES

HORTON SPHERE

10.75" 00

FromHaldla From IPPL Facilities

.Belmurl T .Point (CH.S09KM)

Kai~CS {CH.S49KM)

10.75" 00

HaldlaPS (CH.34S KM)

Raghudebpur T .Point (OH.444KN)

12.75" 00

Budge-Budge. OS

10.75" OD

2 . . i . ! I

-00 <l'

~ ·.'!"r.,l

/8./

Annex11re-m

P ARADIP-HALDIA-DURGAPUR LPG PIPELINE

CAPITAL COST

(August 2010 price level)

({ inLakh)

S. No. DESCRIPTION OF ITEM FE RUPEE TOTAL

1. Survey & Field Engineering 0 252 252

2. Land Acquisition, ROW & 0 11101 11101

f" Crop Compensation .... } -;:.. ( 3. Mainline Pipes 11656 6844 18500

4. Mainline Materials 457 204 661

5. Ma.inline Construction 0 17149 17149

6. Pump Station and Terminal 3976 .25688 ;29664

7. Cathodic Protection ·40 789 829

8. Telecommunication & Telesupervisory 0 3343 3343

9 • . Project Management and 0 4694 4694

Engineering, Insurance

10. Community Development under CSR 0 100 100

Sub Total 16129 70164 86293 ..

,_.~~{{!~ 11. Additional facilities at Haldia 0 641 ()41. 'il!i{,'-"ii

t 12. Additional facilities at Durgapur 0 -60 60

SubTotal 16129 70~65 86994

13. Interest During Construction 0 4232 4232

Total 16129 75097 91:226

Say, tcrore 162 751 ~13

EXCHANGE RATE: 1 US$ =~46.69, I UK£=f73.65, I EUR0='{61.28

... · .. n n n c::){;

Item No. C.9.(i) of Eoctosure-1

1. Project Cost (As. Cr)

Total FECom anent 913.00 162.00

Fundlo : Debt : e ui ratio of 1:1

2. Phasing of Expenditure (As. Cr)

3.

Year Total Rs in Crore 913.00

Major Facilities

Major facilities of the proposed pipeline with design capacity of 0.50 MMTPA in Paradlp-Haldla section' and 0.85 MMTPA In Haldla-Durgapur section In 2-shift operation are as below. · ·

• Installation of pump stations (MLPUs & booster pumps) at Paradlp & Haldia • 2x1 000 MT mounded bullets at Haldia PL Station for line balanCing I · operational requirement · ' • laying of 668 km 1 0. 75" OD pipeline from Paradlp to Dur~r Including

branch pipeline to Kalyani · . • Laying ot 20 km 10.75" OD pipeline from Haldla Refinery to Haldia J:>L Stn. • laying of 2 km 10.75" OD pipeline from IPPl,Haldla to HaJdfa PL Station • Use of existing 8 km 12. 75" 00 branch pipeline of HMRPlt4> to ol~ POL

terminal at Budge-Budge and onward laying of 12 km 12.75" OD ·pipeline to Budge-Budge BP . ~

• Delivery facilities at Balasore, Budge-Budge, Kalyani and Ourgapuf • Installation of scrapper station at Belmuri (T-pQint tor branch PL to Kalyani)

· •. Sectionallzlng valves - 33 nos ·

Additional facilities at Mktg I Source location Include the folowing.

• 2 km plpeline/2 nos transfer pumps with metering tadnties at Haldia Refinery • Conversion of TT decantation bays Into loading bays In existing BPs at

Bafasore, Kalyani & Durgapur. Jnstaftation of additional pumps at Durgapur • Provision of LPG meterin , AOVs necessarv Jnstru.-nentaUon at IPPL Haldia

4. Completion Schedule

.Completion schedule Is 30 months after r~celpt of statutory clearance.

5.

Pago 1 o!S