1.1 SALIENT FEATURES OF THE PROJECT Pipeline extension from VVSPL Vijayawada to the proposed Dharmapuri Storage Terminal

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1 1.0 EXECUTIVE SUMMARY Hindustan Petroleum Corporation Limited (HPCL) is one of the major Public Sector Navratna Oil Company engaged in refining, marketing and distribution of Petroleum Products in India. HPCL owns wide network of distribution and marketing infrastructure throughout the country. HPCL commissioned Vizag to Vijayawada pipeline in 1998 & Vijayawada to Secunderabad pipeline in 2002 with a name plate capacity of 5.38 MMTPA for transportation of MS, HSD, SKO & ATF (especially to feed Andhra Pradesh & Telangana market). HPCL is currently pursuing to expand Vizag refinery from the current name plate capacity of 8.3 MMPTA to 15 MMTPA with a yield of MMTPA for MS, HSD & SKO. In-line with refinery expansion plan, HPCL is also planning to take up capacity augmentation of existing VVSPL (Vizag-Vijayawada-Secunderabad Pipeline) from 5.38 MMTPA to 8 MMTPA simultaneously. With surplus product availability, pipeline extension is proposed from VVSPL Vijayawada to the proposed Dharmapuri Terminal which shall have a throughput capacity of 4.24 MMTPA(Phase-I) and 5.85 MMTPA(Phase-II). The project proponent has also proposed two pumping stations at Markapur and Rayachoty. The proposed project is for Pipeline extension from VVSPL Vijayawada to the proposed Dharmapuri Storage, receiving cum pumping Terminal which shall stretch from Existing Vijayawada Terminal at Kondapalli to Dharmapuri terminal at Sivadi. The project site passes through two states i.e. Andhra Pradesh and Tamil Nadu, 7 districts and 53 Tehsils. The route is mostly characterized as agricultural land along-with some forest areas. The project shall enhance the transport of Petroleum Products to the desired location of Tamil Nadu and Karnataka in an environmentally friendly manner. Currently the products are transported by Tankers which pose high risk along with high transportation cost. The project shall generate employment and better standard of living for the population residing in the nearby villages. Additionally the project shall also generate employment in form of greenbelt development, transportation of construction materials, dust suppression, implementation of Environmental Management Plan, Environmental Monitoring Program and Corporate Social Responsibilities. The project passes through five reserve forests i.e. Kottakota Dasaripalle Reserved Forest, Palkonda & Vanginmalla Reserved Forest, Ganganpalle Reserved Forest, Idupulapaya & Redlacheruvu Reserved Forest and Boyakonda Reserved Forest. The application for the grant of the forest clearance to the project has been already done and is under progress. 1.1 SALIENT FEATURES OF THE PROJECT Project name Pipeline extension from VVSPL Vijayawada to the proposed Dharmapuri Storage Terminal Page 24

2 Location of the pipeline Existing Vijayawada Terminal at Kondapalli to the proposed Dharampuri Terminal at Sivadi Latitude 12 1'53.58"N to 16 39'33.26"N Longitude 78 7'2.36"E to 80 33'35.03"E Topo-sheet number NE 44, ND 44, 65 D, 56 P, 57 M, 57 I, 57 J, 57 K, 57 L, 65 D/10, 65 D/9, 65 D/5, 65 D/6, 65 D/2, 65 D/3, 56 P/15, 56 P/16, 56 P/12, 57 M/9, 57 M/5, 57 M/6, 57 M/2, 57 M/3, 57 M/4, 57 I/16, 57 J/13, 57 J/14, 57 J/15, 57 J/11, 57 J/12, 57 K/9, 57 K/10, 57 K/11, 57 K/12, 57 L/9, 57 L/5, 57 L/6, 57 L/2, 57 L/3 and 57 L/4 Land use of the pipeline stretch Agricultural land along with patches of Forest Land Products to be transported Motor Spirit, High Speed Diesel and Superior Kerosene Oil Length of the Pipeline 697 Kms Proposed capacity of the Pipeline Proposed Time of Completion of Project Proposed throughput capacity : 4.24 MMTPA(Phase-I) and 5.85 MMTPA(Phase-II) 36 Months after obtaining statutory clearances Proposed facilities New Pipeline from Existing Kondapalli Terminal to proposed Dharmapuri Terminal. Additional Dispatch Facilities and additional tankages at Kondpalli Terminal. Additional Intermediate Pumping Stations at Markapura and Raychotti. Additional Pumping and tankages at existing Kadapa Terminal. Additional Intermediate Pigging Station at Kottapalle. Storage terminal at Dharmapuri with Receipt facilities No of working days in a year 300 Water demand 60 KLD Sources of water Tanker Supply Man power 600[100 x 6 Locations] Nearest railway station Kondapalli Railway station 2.6 km (approx.), South of Kondapalli Terminal Markapur Railway Station- 1 km (approx.), North of Kondapalli Terminal Page 25

3 Nearest state highway/national highway Nearest air-port Kadapa railway Station Kms in the North East direction of pipeline. Kuppam Railway station- 2 kms East of the proposed pipeline. Chevuru Madhavaram Railway Station- 300 m (approx.) South West of proposed pipeline route Gangineni Railway Station- 700 m (approx.) North East of proposed pipeline route Dharmapuri Railway Station- 2.5 km (approx.), West Direction of the proposed pipeline route Sivadi Railway Station- 1 Kms (approx.) North of Dharmapuri Terminal Vijayawada airport 28 kms South East of Kondapalli Terminal Salem Airport- 29 Kms South of Dharmapuri Terminal NH221 Adjacent to Kondapalli Terminal in East Direction NH7- Adjacent to Dharmapuri Terminal in West Direction NH219-8 kms West from the proposed pipeline NH46-11 Kms North west of the proposed pipeline route Vijayawada airport 28 kms South East of Kondapalli Terminal Kadapa Airport 10 kms west of the proposed pipeline Salem Airport- 29 Kms South of Dharmapuri Terminal Seismic zone Zone-II and III (As per 1893:2002) Capital Cost Crores 1.2 PROPOSED PLANNING A Project schedule of 36 months duration including commissioning of the pipeline has been proposed for implementation of the project from the zero date. The zero date for the project is considered as the date of obtaining all statutory clearances. The overall responsibility for the project execution will rest with project proponent, i.e. Hindustan Petroleum Corporation Ltd. (HPCL). The schedule is based on the assumption that an EPMC will be engaged to provide the necessary specialized services in the areas of Basic Design, Detailed Engineering, Page 26

4 Procurement, Construction Supervision, Commissioning Assistance and Project Management Services. All the proposed activities shall be commenced at site only after obtaining necessary approvals from concerned authorities i.e. MoEF&CC /SEIAA and SPCB. 2.0 INTRODUCTION The proposed project is for Pipeline extension from VVSPL Vijayawada to the proposed Dharmapuri Storage, receiving cum pumping Terminal which shall extend from Existing Vijayawada Terminal at Kondapalli to Dharmapuri terminal at Boodhanalli with proposed throughput capacity of 4.24 MMTPA(Phase-I) and 5.85 MMTPA(Phase-II). 2.1 IDENTIFICATION OF PROJECT PROPONENT Hindustan Petroleum Corporation Limited (HPCL) is one of the major Public Sector Navratna Oil Company engaged in refining, marketing and distribution of Petroleum Products in India. HPCL owns wide network of distribution and marketing infrastructure throughout the country. It is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra. It has about 25% marketshare in India among public-sector companies (PSUs) and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors. The company is ranked 367 th on the Fortune Global 500 list of the world's biggest corporations as of BRIEF DESCRIPTION OF NATURE OF THE PROJECT The proposed project involves laying of pipeline from the existing Kondapalli Terminal to the proposed Dharampuri Terminal. Thus the project shall be Greenfield in nature. Soil will be carefully unearthed and stored for refilling and greenbelt development. No solid waste other than negligible quantity of construction materials, soil, stones etc shall be generated. Municipal solid waste shall be generated which shall be segregated on site in colored bins. Pipeline shall be laid 1.5 to 2 m beneath the ground level with help of Heavy Machineries. The construction materials shall be transported to site by trucks, trawlers etc as the site is well connected with various national and state highways. After laying of the pipeline, the voids shall be backfilled by the excavated soil. The reclamation of the nearby area shall be done by tree plantation along the service roads, haul roads and other roads in consultation with the village panchayats. Green barriers will be created by plantation as per CPCB Guidelines. 2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND/OR REGION To meet the heavy demands of petroleum products in Andhra Pradesh, Tamil Nadu, Karnataka and Telengala, the capacity of the existing VVSPL has been decided to enhance from 5.68 to 8 MMTPA for which, a new pipeline has been proposed from Page 27

5 existing Kondapalli Terminal to the proposed Dharampuri Terminal with proposed throughput capacity of 4.24 MMTPA (Phase-I) and 5.85 MMTPA (Phase-II). Presently, the petroleum products are transported to the desired locations by tankers which pose high risk and are hazardous to environment. Additionally, it also incurs heavy cost to HPCL which shall be heavily reduced by implementation of this project. Pipelines are considered environmental friendly and efficient mode of transport of petroleum products. It will not only benefit in meeting the huge demand of petroleum products, but also provide direct employment to about 600 persons including skilled, semi-skilled & unskilled laborers. Additional jobs are created by way of transportation of construction materials and greenbelt development. 2.4 DEMAND-SUPPLY GAP The current market demand in Tamil Nadu and part of Andhra Pradesh is to the tune of 2.71 MMTPA and demand en route of northern Karnataka and adjoining part of Maharashtra accounts to 1.8 MMTPA. The heavy demand of petroleum products can be accomplished after laying of this pipeline. 2.5 IMPORTS VS. INDIGENOUS PRODUCTION The crude oil requirement of the refineries is met partly by Indigenous crude and balance through imports. HPCL also imports finished petroleum products for meeting domestic market requirement. The crude oil import for HPCL s refineries is approx. 220 thousand barrels per day (11.0 Million tons per annum). 2.6 EXPORT POSSIBILITY HPCL already exports products and intermediate streams from its refineries. However, this project shall involve transportation of petroleum products only in the country and not outside. 2.7 DOMESTIC/ EXPORT MARKETS The proposed project shall only cater demands within the country. Hence, this is not applicable. 2.8 EMPLOYMENT GENERATION About 600 workers including skilled, semi-skilled & unskilled labors shall be engaged through project proponent from the local areas for the construction phase of the project. Proper maintenance of plantation activities shall generate additional employment. 3.0 PROJECT DESCRIPTION 3.1 TYPE OF PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT PROJECTS, IF ANY The type of project is laying of pipeline from existing Kondapalli Terminal to the proposed Dharampuri terminal to transport petroleum products. It is an extension of existing VVSPL (Vishakahapatanam-Vijayawada-Solapur Pipeline) project and the originating point of the project is Konpadalli terminal which is a part of VVSPL. Page 28

6 3.2 LOCATION OF PROJECT WITH COORDINATES The proposed project shall originate from Kondapalli, Vijayawada to Sivadi, Dharmapuri. The stretch passes through two states, seven districts and fifty-three tehsils. (Details are provided in Form-I) General location of the project stretch is given in Figure 1: Latitude Longitude 12 1'53.58"N to 16 39'33.26"N 78 7'2.36"E to 80 33'35.03"E Page 29

7 Proposed Pipeline Vijayawada Terminal, Kondapalli Kadapa Depot, Kadappa Dharmapuri Terminal, Boodanahalli Figure 1: General location of the proposed pipeline stretch Page 30