KOCHI, July 10 -- Even as the LNG terminal is nearing completion, the Gas Authority of India Limited (GAIL) authorities are demanding that the power plant being set up adjacent to the terminal be relocated away from the terminal. GAIL is the distributor of LNG to the proposed power plant.
The power station is a joint venture of the state government and Petronet LNG Limited (PLL) at a cost of Rs 2,000 crore.
The government had identified 50 acres of land for the 1250-MW power station using the advantages of the proposed plant's proximity to the LNG receiving and re-gasification facilities (LNG Terminal).
However, the GAIL authorities are of the opinion that the plant should be relocated somewhere far from the location of the LNG terminal.
According to GAIL, land in possession of FACT Cochin Division is the ideal location for the power plant.
"The land near Puthuvype near the LNG terminal is not suitable for setting up a power plant for various reasons. The main disadvantage is scarcity of water in the area. Due to its geographical feature, there is always a threat of sea erosion. Because of loose sand, a huge amount will have to be spent for foundation work. Whose interest is this to set it up in the congested Puthuvype itself?" asked a senior official of GAIL.
"Considering the availability of land, proximity of consumers, mainly the petrochemical companies and the proposed Smart City, Ambalamugal is the best option. Since the consumers are located nearby, transmission loss can also be reduced to a great extent," said sources in GAIL.
When contacted FACT authorities said that they have not received any official communication regarding handing over its land for the power plant.
"We will look into the matter and take appropriate action, if there is offical request," Published by HT Syndication with permission from New Indian Express. For any query with respect to this article or any other content requirement, please contact Editor at firstname.lastname@example.org
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(Originally published July 10, 2012, in New Indian Express.)