AP govt takes steps to expedite project at Gangavaram Port

Andhra Pradesh government is taking steps to evolve a time-bound action plan to implement the Rs 4,500-crore LNG terminal project at Gangavaram Port.

The proposed terminal, which is being jointly set up by the Gangavaram Port, and the Petronet LNG, will have an initial capacity of 5 million tonne per year. Work on the project is planned to be completed by mid-2015.

But the state government is taking efforts 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, reports indicate.

The project authority has given the concession agreement to the CRISIL for evaluation. The state government would conduct a meeting with representatives of CRISIL and Gangavaram Port to discuss steps to expedite the project.

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, with an investment of Rs 5,000 crore would be ready by December, 2014.

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.