Indian Oil Corporation Limited (IOC) commissioned its Malkapur Terminal in Hyderabad to strengthen fuel supply infrastructure and improve energy security across Telangana. The terminal will enhance petroleum product availability and operational reliability through direct connectivity with the Paradip–Hyderabad cross-country pipeline. The facility was formally inaugurated by Narendra Modi on Sunday as part of IOC’s efforts to support the region’s growing energy requirements.
Expansion Needed Beyond Existing Cherlapally Facility
IOCL stated that its existing Cherlapally Terminal in Hyderabad, spread across nearly 19 acres, has limited scope for further expansion. Due to space constraints, the company faced challenges in increasing storage capacity and upgrading infrastructure to efficiently manage future fuel demand and larger pipeline parcel sizes from the Paradip–Hyderabad Pipeline.
To overcome these operational limitations, IOC developed the new Malkapur Terminal with an investment of ₹611 crore. The project aims to ensure cost-effective and efficient handling of petroleum products while strengthening long-term fuel distribution capabilities in the state.
Pipeline Connectivity to Improve Operational Efficiency
The Malkapur Terminal has been established as a pipeline-fed terminal, enabling direct receipt of petroleum products through the Paradip–Hyderabad Pipeline. This transition from a rail-fed to a pipeline-fed system is expected to significantly improve logistics efficiency and reduce transportation-related operational costs. By FY 2029–30, the terminal is projected to handle a throughput of 1,891 TMTPA, equivalent to nearly 7,964 kilolitres of fuel per day. The facility will cater to 23 districts across Telangana, covering a major portion of the state’s fuel supply network. According to IOCL, the new supply point at Malkapur will substantially improve energy security for Hyderabad and surrounding regions by ensuring uninterrupted and reliable fuel availability.
Project Delivers Environmental and Sustainability Benefits
Apart from improving fuel logistics, the project is also expected to generate significant environmental benefits. IOCL noted that converting the facility from rail-based operations to pipeline-fed transportation will help save approximately 10,000 kilolitres of High-Speed Diesel (HSD). In addition, the project is expected to reduce nearly 27,000 metric tonnes of CO₂ emissions, supporting cleaner and more sustainable fuel transportation. The shift to pipeline infrastructure also aligns with India’s broader efforts to improve energy efficiency and reduce carbon emissions across the oil and gas sector. As reported by thehindubusinessline.com, the development of the new terminal further strengthens Telangana’s industrial infrastructure while contributing to regional economic growth and energy resilience.
