GMR Infrastructure Ltd's Subsidiary Kakinada SEZ Inks MoU With APGDC For Supply Of Piped Natural Gas
* Kakinada SEZ would be the first on Eastern Coast of India that will provide piped Natural Gas supply to all its industrial units
* APGDC & Kakinada SEZ have assessed the requirement of gas of around 0.5 MMSCMD in the initial two years with subsequent ramping up to 2 MMSCMD
Kakinada SEZ Ltd., a subsidiary of GMR Infrastructure Ltd., signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Gas Development Corporation (APGDC) to get access to piped domestic natural gas for its upcoming 10,500-acre zone.
With this development, Kakinada SEZ would be the first zone on Eastern Coast of India that can provide piped Natural Gas supply to all its industrial units.
The zone, which is located on the Vizag-Chennai Industrial Corridor offers 8521 acres of Industrial land with another 1879 acres earmarked for a Greenfield commercial port.
Kakinada SEZ lies 6 kms away from the Kakinada Srikakulam Pipeline. APGDC has agreed to lay a spur line from the main trunk line to the zone premises for facilitating piped gas access to commercial & industrial customers. APGDC, which is the authorized entity by PNGRB for laying, operating and expanding Gas Distribution Network in Andhra Pradesh, is executing the Kakinada – Srikakulam high pressure Natural Gas Pipeline (KSPL) to facilitate supply of gas for industrial use. The work for 90 kms of Phase I of the KSPL pipeline originating at Kakinada is already underway.
Based on the industry demands, APGDC & GMR Group have assessed the requirement of gas of around 0.5 MMSCMD in the initial two years with subsequent ramping up to 2 MMSCMD in 10 years.
Commenting on the development, Mr. Challa Prasanna, CEO, Kakinada SEZ said, “This unique development will be a boon for gas dependent industries like ceramics, glass, fertilizers and chemicals in this region. Since gas constitutes a major portion of their costs, a 30-40% saving on gas price will yield significant competitive advantage. This is expected to attract significant overseas and domestic investments, giving a boost to “Make in India” and “Sunrise Andhra Pradesh” initiatives.”
Kakinada SEZ is going to be immensely benefitted as the ONGC plans to investment a whopping USD 5 Bn in its ultra-deep water DNW-98/2 field in the Krishna Godavari basin, which is expected to produce 15 MMSCMD of gas and have a land fall point near Kakinada.
