The cabinet gave its nod to Indian Institute of Petroleum and Energy (IIIPE) for setting up a permanent institute in Andhra Pradesh where the institute will offer undergraduate courses in petroleum and chemical engineering.
The cabinet was chaired by Prime Minister Narendra Modi which approved the capital of 655.46 crore as an expenditure which will be required to set up the institute. The institute will be of national importance and will be located in coastal district of Visakhapatnam.
The capital approved by the cabinet is separate besides the INR 200 crore which are being contributed by the oil companies towards the setting of the institute.
"The Institute will have the governance structure as well as legal mandate to grant degrees in a manner similar to that enjoyed by IITs. A separate act will also impart the required status to the institute to become a center of excellence in petroleum and energy studies," the statement said.
The main objective for setting the institute is to fulfill the qualitative and quantitative gap which the petroleum sector is facing in the nation. Another objective is to promote the research activities which are needed for the growth 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 said.
Andhra Pradesh government has earlier allocated 200 acre of land for the institute , free of cost.