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Web Exclusive | May 2013

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

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 by the Tamil Nadu government on May 7 came at a time when the government asked Gail not to proceed with its Rs 3,000 crore pipeline project which will connect Kerala with Karnataka via Southern districts of Tamil Nadu.

Tamil Nadu Chief Minister J Jayalalithaa, while making a suo moto statement in the State Assembly, 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 the 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.

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