Cabinet nod to land for LNG terminal

The government Thursday approved leasing of over five lakh square metre of land for a liquefied natural gas (LNG) storage and regasification terminal at Chennai's Ennore port.

It also approved revival of five closed units of Fertilizer Corporation of India Limited (FCIL) at Sindri, Talcher, Ramagundam, Gorakhpur and Korba.

"The Union Cabinet has given its approval for leasing of land measuring 520,000 sq metre of Ennore Port Limited (EPL) to the joint venture led by Indian Oil Corporation (IOC) for 30 years for setting up of LNG storage and re-gasification terminal project of 5 mmtpa (million metric tonnes per annum) capacity at Ennore Port," an official statement said.

The project is expected to help EPL to utilize gainfully the land and waterfront available with them. Further, it will attract major petroleum and other companies to contribute towards the development of the region. It will lead to the socio-economic development of the backward areas in and around Ennore Port, the statement said.

The decision to revive fertiliser plants is expected to ensure increased domestic urea production and will lessen country’s dependence on its import, an official statement said.

The CCEA approved the waiver of government loan and interest thereon amounting to Rs.10,644 crore. It also approved the proposal for inter corporate loan of Rs 171 crore for FCIL and commitment fee of Rs 25 crore for FCIL to be given by PSUs involved in the revival of Sindri, Talcher and Ramagundam.