A second underground storage facility for liquefied petroleum gas (LPG), at Mangalore, in Karnataka, proposed by Hindustan Petroleum Corporation (HPCL), is facing hurdles.
HPCL had planned to invest Rs 700 crore for setting up its second 60,000 tonne LPG underground storage facility - also called an LPG cavern - with French partner, Total SA. But after a cap on the number of cylinders, demand for LPG cylinders in the country has come down and the plant has hit a roadblock.
Meanwhile, HPCL and Total, through their equal joint venture, South Asia LPG (SALPG), already have a 60,000 tonne capacity LPG underground storage facility in Visakhapatnam, Andhra Pradesh. The facility had started in 2007 at an investment of Rs 333 crore.