While State Bank of India and ICICI will contribute Rs 90 crore each to the debt portion, Punjab National Bank, Vijaya Bank and Uco Bank will chip in with Rs 45 crore each. Union Bank's contribution will be Rs 36 crore while State Bank of Patiala and State Bank of Saurashtra will lend Rs 27 crore and Rs 22 crore apiece.

The equity holders in Petronet-CCK, who will fund the balance Rs 135 crore, are Petronet India and Bharat Petroleum Corporation who will hold 26 per cent each, Cochin Refineries (23 per cent), SBI, AIG-IL&FS fund and other strategic investors. The cost estimate of Rs 535 crore are based on an equipment list at each terminal, preliminary engineering inputs and in-house cost data adopted.

The CKPLproject envisages laying a 308 km long multi-product pipeline from BPCL's existing Irimpanam installation at Kerala to the proposed receiving station at Karur, Tamil Nadu, with intermediate tap off points at Shoranur and Coimbatore.The project includes pumping and despatch facilities at Irimpanam, product tapping facilities at Shoranur and Coimbatore and a full fledged terminal at Karur with rail/road loading facilities.

Experts say that the pipeline is an absolute must given the tremendous pressure on the rail and road networks. The demand for petroleum products, mainly high speed diesel (HSD), motor spirit (MS) and superior kerosene oil (SKO) in the southern region is currently being met from CRL, Madras Refineries, Mangalore Refinery and Petrochemicals and HPCL's Vizag facility.

The production ex-CRL is distributed to the demand centres by rail, road and offshore tankers. The availability of products from CRL indicates that the demand for MS and SKO could be serviced by the refinery while there wouldbe a shortfall in HSD. This deficit is expected to be met from imports at Cochin port. Karur has been found to be the most suitable location as compared to alternate sites like Coimbatore and Tiruchi, since most of the throughput would move onwards in the direction of Karur. Karur is also well connected by rail/road in different directions.

Based on the annual demand projections of different products at each base -- at Shoranur, Coimbatore and Karur -- the design throughput of the pipeline is envisaged at four million tonnes.

At Cochin, a suitable plot has been earmarked in BPCL's Irimpanam installation for locating despatch facilities relevant for pipeline operations such as a pump house, corrosion inhibitor system, metering system and scrapper launching facility.

Petronet India was formed with the objective of providing pipeline transportation to all oil companies on a common carrier principle. It would also develop a pipeline network to ensure steady supply of petroleum products and minimise cost oftransportation. This would also help bridge the projected shortfall in inland movement capacities.