Financial Daily from THE HINDU group of publications
Wednesday, May 29, 2002
Financial Daily from THE HINDU group of publications Wednesday, May 29, 2002 |
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Logistics
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Infrastructure Regulatory norms hold Kakinada LNG terminal project take-off V. Rishi Kumar
HYDERABAD, May 28 THE mega Kakinada LNG terminal project, proposed to be developed near Kakinada in Andhra Pradesh, is having to wade through a host of regulatory concerns including the latest issue of addressing the coastal regulation zone (CRZ) clearance. The Andhra Pradesh Government and the Kakinada Indian Oil Consortium (KIOCL) comprising Indian Oil Corporation, BP Asia Pacific Inc., Petronas (Petroleum Nasional Berhad) and Cocanada Port Company Ltd. (COPL), had signed up for the mega project during the CII-Partnership Summit last year. However, the project has now been subjected to a host of regulatory issues and the latest concern is with regard to the coastal zoning regulation, according to Government sources. The Rs 18,500-crore project is programmed to be implemented in a phased manner and the first phase would involve developing a LNG terminal for the import of 5 mmscmd of LNG and this is programmed to be ramped up to 10 mmscmd in the later phase. The consortium had also proposed to develop a 1,000-MW LNG-based power project under the phase one project plan itself. However, with the State now gradually drifting towards a power surplus situation, and the planned outlay set to outstrip the projected demand, the Government has become cautious on the power project and has directed the consortium to de-link it from the main project, as this would further delay the project. This project will also involve development of port facilities, re-gassification and transmission facilities and it is proposed to make this as the energy corridor in the area linking the entire region. In fact, the consortium had submitted a detailed project report, and the State Government had granted all approvals to the LNG terminal, but the developers had problems with regard to CRZ, Government sources said. The CRZ is extended by the Ministry of Environment and Forests, Government of India. These rules have become quite tough following a Supreme Court judgement.
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