The Union Cabinet on has approved setting up of an Indian Institute of Petroleum and Energy (IIPE) at Visakhapatnam in Andhra Pradesh. At the time of Telangana’s formation, the same was committed by the then Central Government with estimate budget of over Rs 655 crore.
The Cabinet headed by Prime Minister Narendra Modi approved setting IIPE as ‘an Institute of National Importance’ through an Act of Parliament. “The Institute will have the governance structure as well as legal mandate to grant degrees in a manner similar to that enjoyed by IITs,” an official statement said.
With a separate Act, The institute will be imparted the “Centre of Excellence” status to the institute in petroleum and energy studies. The Cabinet has approved Rs 655.46 crore as capital expenditure to set up IIPE and Rs 200 crore will be contributed as institute’s Endowment Fund.
This will be in addition to a contribution of Rs200 crore from oil companies towards the Endowment Fund.
For setting up IIPE at Sabbavaram Mandal in Visakhapatnam district of Andhra Pradesh, the state government has allocated 200 acres of land, free of cost. From academic session 2016-17, IIPE is running from a temporary campus at the Andhra University. Currently, two undergraduate programmes in petroleum engineering and chemical engineering with capacity of 50 students each are being conducted from the temporary campus.
IIT-Kharagpur will mentor the institute. The institute is being set up with an objective to bridge the quantitative and qualitative gap in the supply of skilled manpower in the petroleum sector. IIPE will also promote research activities needed for the growth of the sector.
“The academic and research activities of IIPE will derive strength from the institute’s proximity to sector-related activities such as KG-Basin, Visakhapatnam refinery and the planned petrochemical complex at Kakinada,” the statement added.