Chennai: State-run gas firm GAIL India would set up a 310 km gas pipeline in Tamil Nadu connecting seven districts in the state, at an investment of Rs 1000 crore, Chief Minister Jayalalithaa said on Friday.
"As part of laying the pipeline, GAIL India exchanged documents with Tamil Nadu Industrial Development Corporation (TIDCO) in my presence yesterday," she told the Assembly making a suo motu statement.
"GAIL has commenced the construction of infrastructure for laying the pipeline between Kochi and Bangalore. The 310 km pipeline connecting the two cities, will pass through Coimbatore, Salem, Erode, Tiruppur, Namakkal, Dharmapuri and Krishnagiri districts in Tamil Nadu", she said.
GAIL India would be able to supply gas through these pipelines to the nearby industrial units and to urban households, she said.
A project to setup floating storage degasification unit would be established by GAIL at an investment of Rs 2,500 crore, she said.
Through the Kochi-Bangalore gas pipeline connectivity, 500MW of power would be available under the first phase, she said, adding, Rs 2,000 crore investment would be made for this purpose.
Jayalalithaa said GAIL India and TIDCO would establish a joint venture company for generating the power. "In the coming five years, this project would be expanded attracting Rs 10000 crore worth of investments" she said.
Recalling public sector Indian Oil Corporation exchanging documents with TIDCO for setting up Rs 4500 crore LNG Terminal at Kattupalli near Chennai, she said when this project comes into operation in 2016, five million tonnes per annum of liquefied natural gas (LNG) would be available.
IOCL and TIDCO entered into an agreement in March this year for setting up the LNG Terminal.