Indian Oil Bets INR 59 Crore to Secure Island LPG Supply

Indian Oil is investing nearly INR 59 crore to strengthen LPG supply across the Andaman and Nicobar Islands.

The company plans to deploy a dedicated vessel to transport LPG cylinders from Sri Vijaya Puram. The move aims to ensure uninterrupted deliveries to remote islands. It also addresses long-standing transport challenges across the Union Territory.

The state-owned oil major has floated a tender worth around INR 58.9 crore. The contract will run for five years. The vessel will exclusively carry packed LPG cylinders from the Sri Vijaya Puram bottling plant. It will deliver them to distributors across the islands.

The project is expected to improve fuel availability for thousands of households. It will also reduce dependence on scheduled cargo services. These services often face delays because of weather and limited vessel availability.

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Indian Oil plans dedicated logistics network

Indian Oil's new shipping arrangement focuses on improving the region's fuel distribution network. The company wants to create a stable transport system for essential cooking gas supplies. According to company officials, the dedicated vessel will help maintain regular deliveries throughout the year. It will also strengthen the public distribution system across the islands.

The Andaman and Nicobar Islands consist of several scattered islands. Many locations depend on sea transport for daily essentials. Any disruption in shipping directly affects LPG availability. The dedicated vessel is expected to solve this issue by offering scheduled and exclusive transportation. It will help distributors receive LPG cylinders on time. Consumers will also benefit from fewer supply interruptions.

Why the project matters

The islands have experienced LPG supply disruption several times in recent months. In some cases, authorities even sought help from naval vessels. Those emergency arrangements ensured cylinder deliveries to remote locations.

Indian Oil now wants a long-term solution instead of temporary measures. A dedicated vessel provides better planning and greater operational flexibility.

The investment also supports stronger supply chain management. Reliable fuel transportation remains essential for island communities. Consistent LPG availability reduces uncertainty for households and businesses.

Key highlights

• Indian Oil has floated a tender worth about INR 58.9 crore.
• The contract period will be five years.
• A dedicated vessel will transport packed LPG cylinders.
• The vessel will operate from Sri Vijaya Puram.
• LPG will be supplied to distributors across all islands.
• The project aims to improve supply reliability.
• The move will reduce dependence on regular cargo vessels.

Better fuel security for island residents

The latest initiative reflects Indian Oil's focus on improving energy access in remote regions. Better logistics can significantly improve essential fuel distribution. The dedicated vessel will support timely LPG deliveries throughout the contract period. It will also reduce delays caused by unpredictable shipping schedules.

For residents across the Andaman and Nicobar Islands, the project offers greater confidence in cooking gas availability. It also strengthens the region's overall energy infrastructure. With this investment, Indian Oil is taking a practical step toward building a more reliable LPG supply network. The initiative could become a model for fuel distribution in other remote coastal regions.