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Southern States - Tamil Nadu-Chennai

LPG conversion generates interest among petrol outlets
By N.Ravi Kumar

CHENNAI, JAN. 23. The growing emphasis by the different stakeholder-agencies on promoting LPG as auto fuel is generating considerable interest among the petrol bunks.

One driving force is the ambitious plan of the Tamil Nadu Pollution Control Board to convert all the city autorickshaws to run on the `green' gas. The Board is also ready to provide finance for procuring LPG conversion kits.

Hence, several bunk owners want oil companies to take them into consideration while drawing plans for setting up Auto LPG Dispensing Stations.

With most of the estimated 60,000 autorickshaws being petrol-driven, they contribute significantly to the sales at the outlets. Hence, the Board's proposal has fueled speculations that LPG may cut into existing petrol sales substantially, rather than making it a lucrative business.

The oil industry has proposed to commission two ALDS in Chennai, in Kilpauk and Koyambedu by July. In addition, a private firm will set up an ALDS near Arumbakkam.

These factors have led to a situation where expectations are running high among many outlets. However, stringent ALDS norms of the Department of Explosives, especially with respect to the prescribed safety distances may put paid to their hopes. Unless they are relaxed, most of the existing outlets will ineligible to set up auto LPG dispensing facilities, said industry sources.

Having modernised several outlets by pumping in huge capital (in some cases as much as Rs.1 crore), oil firms are unlikely to show much interest in adopting LPG facilities as it would mean alterations and additional expenditure.

Moreover, oil companies are still unsure whether LPG would turn out to be a viable business proposition, as the present enthusiasm is linked to the illegal use of domestic subsidised cooking gas cylinders in automobiles.

As per estimates, nearly 20,000 automobiles, including an insignificant number of autorickshaws, are run on LPG cylinders. One reason why use of LPG has failed to catch the fancy of autorickshaws, is the space constraint in fitting the domestic LPG cylinder. Another is the use of lubricants (2-T oil), in the vehicle, which is mixed with petrol.

Notwithstanding all these factors, sources among petroleum dealers favour the relaxation of the safety norms. The norms, they say, should be in tune with the present socio-economic conditions, including the cost and availability of land. The existing norms were framed at a time when the cost of land was cheap and availability in plenty.

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