Given the idle capacity of gas-based power projects due to shortage of fuel and severe power crisis in the State, the government is expediting the procedural formalities to ground the Petronet LNG terminal project at Gangavaram Port in three months.
The Gangavaram Port Ltd.,(developed in PPP mode) and the Petronet are setting up the terminal as a joint venture project. The concession agreement has been given to the CRISIL for evaluation. A meeting is scheduled in a week with representatives of CRISIL, Gangavaram Port Ltd., Infrastructure and Investment and law departments, said Infrastructure and Investment, Ports Minister Ganta Srinivasa Rao.
“A time-bound action plan will be evolved in the meeting. The Rs.4,500-crore project with initial capacity of five million tonnes per year, is planned to be completed by mid-2015. Our efforts are to bring it to a safe stage by 2014 by completing the LNG marine facility. Though it is planned as land terminal at Gangavaram port, in the first phase a Floating Storage and Regassification Unit will be hired for early commencement of gas supply,” Mr. Srinivasa Rao told The Hindu.
Another FSRU/RLNG terminal at Kakinada Deepwater port being set up by the APGIC through its subsidiary APGDC in collaboration with M/s GDF Suez LNG UK Ltd., with an investment of Rs.5,000 crore would be ready by December, 2014.
A public hearing was held recently for the Petronet project. The Kakinada LNG terminal and the Petronet LNG terminal will turn the economy of the State. The gas-based power plants in East Godavari, starving for fuel, could start generating power, easing the power crunch, department sources said.
The LNG supplied by Petronet terminal is expected to generate Value Added Tax of Rs.2,500 crore to the government while a further amount of Rs.3,000 crore, also on account of VAT, is expected from the Kakinada LNG terminal, they added.
Both the terminals will supply 30 MMSCMD of gas and provide additional and relatively cheaper alternate fuel to various sectors.