Chennai, May 11 (IANS) The Gas Authority of India Ltd (Gail) and the Tamil Nadu Industrial Development Corporation Ltd (Tidco) would jointly promote a special purpose vehicle to set up a 500 MW liquefied natural gas (LNG) fuelled power plant at an outlay of Rs.2,000 crore, Tamil Nadu Chief Minister J. Jayalalithaa said Friday.
Announcing this in the state assembly Jayalalithaa said: "With the gas available through the Kochi-Bangalore pipeline a 500 MW power plant at an outlay of Rs.2,000 crore will be set up in the first phase. Over the next five years the project will be expanded involving an outlay of Rs.10,000 crore."
Gail is laying LNG pipeline between Kochi in Kerala and Bangalore in Karnataka via Tamil Nadu. Around 310 km of pipeline will traverse through the state and Gail would supply gas for industries, vehicles and houses, she said.
The chief minister said Gail was also planning to set up a floating storage degasification unit along the coast at an outlay of Rs.2,500 crore.
Pointing out that the state is mainly dependent on coal and petroleum products for its energy needs she said the government has realised the importance of LNG in fulfilling its energy requirements.
She said the state government has signed a memorandum of understanding with the Indian Oil Corporation to set up a five million tonne per annum LNG terminal here.
Once the LNG terminal goes on stream in 2016 it would feed around 18 million cubic metre of LNG daily for power generation, industries and houses, Jayalalithaa said.
According to Jayalalithaa, the state government would form special purpose vehicles to promote industrial estates in Tuticorin, Vellore and Krishnagiri districts, besides a hub for heavy engineering industries at Ennore.