At present, domestic production of LPG is around 12.38 million metric tonne per annum (mmtpa), much lower than the estimated demand of 18.65 mmtpa for this year. The proposed project aims to boost supply and help achieve the government's target of making LPG available to each household by 2018.

"Based on the recommendations of the Expert Appraisal Committee (industry), the environment ministry has given environmental clearance and Coastal Regulation Zone (CRZ) clearance to the BPCL's project in West Bengal," a senior government official said.

The green nod is subject to certain specific and general conditions, the official said.

The proposed project will ensure LPG supplies to far-flung areas of eastern and north-eastern regions and will create an infrastructure to import the eco-friendly LPG fuel, the official added.

As per the proposal, Bharat Petroleum Corporation (BPCL) will set up an import terminal at Haldia to import 1 mmtpa of refrigerated Propane and Butane and transfer it through 7.5-km long twin transfer pipeline for LPG production, despatch of bulk LPG via road tankers and bottling of LPG in cylinders.

The proposal also includes setting up of a bottling plant comprising two LPG-mounded bullet storage facility of 350 tonnes capacity each, besides loading facilities, allied machineries, loading gantries for bulk tanker and filled cylinder despatch through road within the land allotted.

The estimated cost of the proposed project is Rs 694 crore, which is to be completed in a year from the date of award of the environment clearance.

BPCL, one of India's four major integrated petroleum refining and marketing companies, produces a diverse range of products from petrochemicals and solvents to aircraft fuel and specialty lubricants.

The company markets its products through its wide network of petrol stations, kerosene dealers, LPG distributors, besides supplying fuel directly to hundreds of industries, and several international and domestic airlines.