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

Deepthi | Myequity news | Date : 11-10-2018 13:55:00 IST

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. 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 5Bn 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.

About GMR Infrastructure Limited (GIL):


GMR Group, a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure, is listed on Indian Stock Exchanges.

GMR Group’s Airport portfolio has around 160 mn passenger capacity in operation and under development. The Group’s Energy business has a diversified portfolio of around 6,800 MWs, of which 4,500 MWs of Coal, Gas and Renewable power plants are operational and around 2,330 MWs of power projects are under various stages of construction and development. The group also has coal mines in Indonesia, where it has partnered with a large local player. Transportation and Urban Infrastructure division of the Group has six operating highways project spanning over 2,000 lane kms. The Group has a large EPC order book of railway track construction including Government of India’s marquee Dedicated Freight Corridor project.


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