Chennai Petroleum Corporation Ltd's (CPCL)'s plan to replace the existing crude pipeline from Chennai Port to its refinery in Manali with a bigger pipe has hit a roadblock.

The Environment Ministry has refused the Coastal Regulatory Zone (CRZ) clearance to CPCL's crude pipeline project, citing threat to habitation. CPCL proposes to replace the existing 30-inch crude pipeline from Chennai Port to Manali with a new 42-inch pipe at a cost of Rs 126 crore.

However, the Ministry in an order on Friday advised the company to come up with alternative route working out safety aspects for the pipeline and submit a fresh proposal along with the recommendations of the Tamil Nadu Coastal Zone Management Authority (TNCZMA).

‘Close to habitation'

CPCL's proposal was recently examined by the Ministry's Expert Appraisal Committee (EAC), which observed that there were “two stretches of the pipeline project close to habitation.”

Hence, the EAC suggested that CPCL should consider an alternative route so as to keep the maximum distance between the habitation and the pipeline. The EAC also recommended that the project proposal be deferred. The EAC recommendations have been accepted by the Ministry, the order said.

For CPCL, the new pipeline, apart from increasing reliability, is also expected to enhance the discharge rate from the tankers thereby significantly minimising the tanker detention period and demurrage costs. CPCL earlier expected to complete the pipeline project within 18 months from the date of receipt of CRZ clearance.

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