The Hindu Business Line : KSIDC, NTPC to sign pact for LNG terminal

THE State Cabinet has approved a proposal authorising the Kerala State Industrial Development Corporation (KSIDC) to enter into an agreement with the National Thermal Power Corporation Ltd (NTPC) for setting up an LNG terminal at the latter's Kayamkulam power plant.

The Kayamkulam thermal project, which is scheduled to convert itself into an LNG-fired plant, will see its present capacity of 350 MW being augmented by another 1,950 MW to peak at a cumulative 2,300 MW during the 11th Plan period. The regassification terminal to be set up in Kayamkulam will take care of the power plant's fuel requirements.

Briefing newspersons here on the decisions taken at the Cabinet meeting, the Chief Minister, Mr A.K. Antony, said KSIDC was being assigned for the job in its capacity as the nodal agency and `local facilitator'.

In another decision, it was agreed that the Government `take appropriate action' on the recommendations of the expert committee that is studying drinking water shortage in Plachimada in Palakkad district where Coca-Cola has a bottling plant.

"The Government will not shirk from its responsibility of implementing the committee's recommendations," the Chief Minister said. He, however, declined to comment when asked whether the Government feared the prospect of compensating the company in the event of the expert committee recommending the closure of the Plachimada facility.

Farmers of the drought-hit Palakkad district would be exempted from irrigation cess for a period of one year, Mr Antony said.

Further decisions in this connection would be taken once the Cabinet Sub-Committee, chaired by the Agriculture Minister, Ms K.R. Gowri Amma, provides an on-the-spot report after a visit to the place on January 18.

The other members on the committee are the Revenue Minister, Mr K.M. Mani, the Finance Minister, Mr K. Sankaranarayanan, the Water Resources Minister, Mr T.M. Jacob, and the Cooperation Minister, Mr M.V. Raghavan.