India unveils new pipeline policy

Friday, 06 December 2002, 20:30 IST
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New Delhi, Dec 5 (IANS) In a major move towards further deregulating the oil sector and to attract investment in petroleum product pipelines, India is mooting a new pipeline policy based on the common carrier principle. The new guidelines for grant of right of user (RoU) on land remove restrictions or conditions for the grant of RoUs for crude oil pipelines, according to a notification tabled in Lok Sabha Thursday by Minister of State for Petroleum Santosh Kumar Gangwar. Internationally, the transportation of petroleum products by pipeline is preferred to other modes since it is safer, operationally convenient and environmental friendly. In most cases, transportation by pipeline is cheaper than by rail or road, according to the petroleum ministry. Prior to the lifting on curbs on marketing of petroleum products from April, the state-owned companies had pipelines mostly in the northern and the eastern part of the country. The new policy guidelines are expected to pave the way for clearing long-pending projects like the Central India Pipeline, a joint venture of state-owned companies and Reliance, Chennai-Madurai Pipeline of Indian Oil Corporation and pipelines from the west coast connecting the southcentral markets.
Source: IANS