News Release Details

IndianOil’s 'Make in India' initiative: Low cost Aviation Fuel Station
New Delhi   17-Dec-2015


Low Cost AFS

Indian Oil Corporation, India’s flagship refining and marketing company has taken on the mantle to give a concrete shape to the Government’s plans of developing 200 low-cost airports in the next 20 years to connect tier-II and tier-III cities. The development of new airports in smaller cities and towns is part of the government’s efforts to encourage air travel in the country.

IndianOil, with its half century experience as the country’s leading aviation fuel suppliers has taken the lead to devise a viable indigenous business model to ensure cost effective refuelling facilities at these airports. A special business model has been created in view of the fact that while setting up of low-cost airports in these cities ranks high on the Government’s agenda, constructing full-fledged aviation fuelling facilities at small city airports might not be economically viable. IndianOil is ensuring that while the low-cost model will be put in place, there will be no compromise on safety and quality and that the refuelling facilities will meet its stringent statutory as well as quality control norms.

While IndianOil has already received requests for setting up refueling facilities at Rourkela, Shimla, Dharamsala, Sindhudurg and other airports located in the north-east, it has already successfully commissioned its first low cost aviation fuelling facility at Mohali. These airports will not only serve as feeder airports, generating traffic for existing under-utilized airports, but also cater to the tourist inflow.

The low cost AFS model comprises setting up of small-sized AFSs or Aviation Fuelling Points (AFPs), with a provision of containerized/self bunded tanks and allied facilities after taking over of optimum sized land from AAI/airport operator/Govt. agencies like Railways or on IndianOil’s Retail Outlets. These AFPs, which cost less than 25% the cost of a traditional AFS, are based on the concept of mobile storage, wherein a composite unit has been designed and developed in-house, consisting of double walled storage tank, integrated with DGCA approved procedure of facilities. This composite unit can be shifted to any other location, in case the operations at given location is found to be unviable. This arrangement will cut down idling or under-utilization of assets.

IndianOil utilised the in-house facilities and expertise of its Cyrogenic Division at Nasik for fabrication of stainless steel (SS) containerized/self bunded tanks of varying capacities - 15/30/35 KL. The construction cost of these tanks has worked out much lower as compared to fixed facilities, making the model viable even at a miniscule monthly sale of 25 KL. This new concept with SS tanks has been introduced for the first time in the country and has been accorded Petroleum and Explosives Safety Organisation (PESO) approval.

This “Make in India” initiative, involved total design, manufacture, supply, erection and commissioning of double-walled vessels by IndianOil’s Aviation group in association with its Cryogenic Unit. The Containerized unit being double walled requires very small safety distances as specified by PESO and OISD thereby reducing drastically the total land requirement. Encouraged by the economic viability of this model, IndianOil is in the process of constructing several small sized AFPs/AFPs at various tier II and tier III cities.