Gail lines up Rs 15000 cr projects in Orissa

Gail (India) Ltd has decided to set up joint venture projects worth over Rs 15,000 crore in Orissa. The projects include a coal gassification plant, pipeline project, petrochemical complex and a power plant.

The company will invest Rs 2,000 crore in converting coal into gas (surface coal gasification) at Talcher. The project, which will use Shell technology, will convert 4,400 tonne coal into gas per day which can feed a 4,500-tonne urea plant.

Alternatively, the gas can also be used to generate power said Proshanto Banerjee, chairman and managing director, Gail (India).

Besides, the company plans to lay a high pressure 1,140-km, Rs 4,000 crore pipeline from Kakinada and Haldia, feeding major towns such as Balasore, Bhadark, J K Road, Cuttack and Khurda in Orissa where a number of steel and other metal processing industries are in the pipeline at present.

The company also plans to implement city gas distribution projects in Orissa, supplying compressed natural gas (CNG) to automobiles and piped natural gas for domestic use in cities such as Cuttack and Bhubanewar.

Banerjee said, Gail was a partner and a preferred buyer of gas from the A-1 block in Myanmar, where 4 trillion cubic feet of gas reserves had been discovered. The company plans to ship the gas from A-1 in form of CNG in special ships to a suitable port in Orissa.

"Though we are considering three locations, Paradip, Dhamra and Gopalpur, the upcoming port at Dhamra will be more suitable for the purpose as it is centrally located", he said. The state government has assured the company to reserve a dedicated bund at Dhamra port for transportation of gas he added.

The company proposes to set up a petrochemical complex in Orissa at an estimated investment of Rs 6,000 crore.

Banerjee said apart from the pipe line project other three projects will have a set of partners. The company, he said, was even open to have foreign company participation.

Stating that cooperation of the state government was essential for successful implementation of the projects, Banarjee said, "Gail and the state government will soon finalise a comprehensive Energy Cooperation Agreement, in Janurary next, which would pave the way for Gail's major investments in the state".

Banarjee said he had a fruitful discussion with the Chief Minister and other senior state officials on the projects and added that both the Gail (India) and the state government would soon set up task forces to examine and prepare feasibility report on each of the projects.