Hindustan Petroleum Corporation Ltd is to set up three liquefied petroleum gas bottling plants with an investment of Rs 55 crore (Rs 550 million) even as it plans to introduce the 5-kg LPG cylinders in the urban areas.

"We are setting up plants in Indore, Mumbai and Delhi at a cost of Rs 20 crore (Rs 200 million), Rs 25 crore (Rs 250 million) and Rs 10 crore (Rs 100 million), respectively. These projects will be funded through internal accruals," S V Sahni, general manager and head of LPG (strategic business unit), HPCL, told reporters in Mumbai on Thursday.

The capacities of plants at Indore and Delhi would be of 44,000 metric tonnes per annum each, while the one in Mumbai would have a capacity of 88,000 metric tonnes per annum, Sahni said.

Plants at Indore and Delhi would start functioning from September next year, while the one in Mumbai was expected to be ready in the next two years, he added.

Currently, HPCL has 40 LPG bottling plants and also outsources some of its bottling activity, Sahni said.

Referring to the 5-kg cylinders, HPCL marketing director N K Puri said, "They were initially launched in the hilly and rural areas and the company will shortly introduce them in towns."

The deposit for the 5-kg cylinder was Rs 350, while refill would cost Rs 90-100, he said.