The Hiranandani Group has drawn up plans to invest about Rs 3,000 crore to set up four-million-tonne (mt) liquefied natural gas (LNG) terminal at Haldia in West Bengal, a move that will help the Mumbai-based group cater to the needs of the eastern India market.
In October last year, Business Standard had reported about the group's plan to set up an LNG terminal in the east, but details of the project were not divulged at that time, as a feasibility study was going on. "Now, we have got the feasibility report in place for the terminal at Haldia in the middle of the ocean with a capacity of 4 mt. It will see an investment of about Rs 3,000 crore," said Darshan Hiranandani, director of Hindustan Elect-ricity Generation Co, a group firm.
The group is now doing the real-time monitoring study for the project, which would come under the Kolkata Port Trust area. "The real-time monitoring study and clearances from the Centre are likely to be in place in six months, and we expect to start the work in another nine months," Hiranandani added.
The firm was eyeing the market in West Bengal, Bihar, Jharkhand and north Orissa. The group is already setting up an 8-mt terminal at the Dighi port in Maharashtra for captive use for its upcoming power plants and to cater to consumers in the power and fertilizer industry.
"Last week, we have got environment clearance for the Maharashtra project, which would see an investment of more than Rs 6,000 crore. Work is expected to start on this in another six months," Hiranandani said.
Hiranandani was reportedly in talks with the South Korea-based Hyundai Engineering and Construction Co to build the Dighi terminal.
Not just Hiranandani, a lot of other players like GAIL India Ltd, Petronet LNG Ltd and Indian Oil Corp Ltd are looking at the east coast for setting up LNG terminals. "Competition is good as the country needs more LNG terminals to meet the increasing demand for gas," he added.
GAIL, too, was planning a terminal at Haldia. Petronet may locate its third terminal in the country at Dhamra in Orissa. State-run Indian Oil Corp was reportedly mulling options to set up a 5-mt terminal in the east, mainly to meet the natural gas requirement for its refineries in Haldia, Paradeep (Orissa) and Barauni (Bihar).
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(Originally published July 12, 2012, by Realty Plus.)