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LNG grid backbone of all future development: CS

Updated - June 03, 2015 08:08 am IST

Published - June 03, 2015 12:00 am IST - THIRUVANANTHAPURAM:

The proposed LNG pipeline grid originating from would be the backbone of all future development schemes in Kerala. However, opposition to the project from some quarters has made it impossible to lay the pipelines, Chief Secretary Jiji Thomson has said. He was speaking at a Met-the-Pess programme organised by the Press Club here on Tuesday.

Even though the Vallarpadam and LNG terminals were cleared at the Global Investment Meet years ago, the Vallarpadam terminal is operating only at 10 per cent capacity and the LNG terminal at 1.79 per cent capacity. For its part, the Kochi port is operating at a loss of Rs.75 crore and is in imminent danger of closure, he said.

Till date only 17 km of LNG pipelines have been laid. Pipelines worth Rs.1,500 crore have been purchased but not laid. In Gujarat at the same time 2,800 km of pipes have been laid and the government is getting an income of Rs.3,000 crore from them. If the power plants at Cheemeni and Brahmapuram need to shift to gas-based production, then the pipeline grid is an essential prerequisite. Also, if the proposal to reach gas to homes in Kochi is to be realised, the grid needs to be in place first.

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The first need of all developmental schemes is energy, Mr. Thomson said.

Kerala ranks very low in ‘ease of doing business.’ In other States, a single-window clearance system means exactly that. But in Kerala, there are many small windows inside that single window. There are a lot of outdated laws in the State that are holding up developmental schemes, the Chief Secretary added.

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