TIDCO to to set up gas-based power plant, re-gasification unit

Move comes at a time when the TN Govt has said no to Gail's Rs 3,000 crore pipeline project

Tamil Nadu Government today announced that Tamil Nadu Industrial development Corporation (TIDCO) will invest Rs 3,500 crore to set up a re-gasification unit and gas-based power plant.

The announcement comes at a time when the State Government has asked Gail not to proceed with its Rs 3,000 crore pipeline project which will connect Kerala with Karnataka via Southern districts of the State.

Making a suo moto statement in the State Assembly today, Tamil Nadu Chief Minister J Jayalalithaa said that a mega industrial plan comprising a deep water port, floating storage re-gasification Unit and gas-based power plant will be set up by TIDCO at Nagapattinam district at an investment of Rs 3,500 crore.

The Deep Water Port will come on the Southern coast of Nagapattinam district and the power plant capacity will be 500 mega watt, said Jayalalithaa.

It is interesting to note that State Government is promoting gas-based power plants at a time when it took a decision not to allow Gail to lay pipeline in seven Southern districts of the State, after farmers protested against the project. Even the state Government was planning to set up a 500 MW power unit based on this project.

The other gas-based power project announced by the State Government was based on Indian OIL Corporation (IOC's) LNG Terminal Project in North Chennai.

On March 22, 2012 IOC signed a MoU with TIDCO to invest around Rs 10,000 crore to set up a LNG Terminal at Ennore. The state government said it was planning to set up a gas-based power plant near to the terminal with a capacity of 500 MW.