GAIL to partner Orissa in gas-based power project

State-owned natural gas processing and distribution company Gail India has shown interest to make Orissa a partner in setting up of a gas-based power project in the state, informed T Ramachandru, industry secretary, Orissa government.

“Gail India is interested to form a joint venture with the state government for setting up of a gas-based power project in the state. They will give a formal proposal soon,” he said on the sidelines of a climate-friendly technology seminar organised by the Confederation of Indian Industries (CII) here.

Two weeks ago, Gail India won the bid to lay down gas pipelines for 1,500 km, stretching from Surat to Paradip after bidding just one paise to transmit one million British Thermal Unit (BTU) of gas.

The pipeline project, estimated to be built for Rs 5,500 crore, will originate from Mora in Gujarat, a major terminal of gas grid pipeline network and is will end at the Indian Oil Corporation's refinery at Paradip.

The bi-directional pipeline is proposed to pass through Jalgaon, Nagpur, Raipur and Bhubaneswar. While the main line would cover 1,500 km, another 124 km spur lines would go through the states of Gujarat, Maharashtra, Chhattisgarh and Orissa. After signing up 29 agreements with several companies to set up coal-fired power plants, the state government has shown its interest to set up gas-based power projects also. Few months ago, leading petroleum products trader Petronet proposed to establish a Liquefied Natural Gas (LNG) terminal at coast of Orissa. The company is in talks with the authorities of Paradip, Dhamra and Gopalpur port to establish the berth at one of these locations.