Kochi LNG terminal to be inaugurated shortly

Our Economy Bureau
24 June 2004

Kochi: The foundation stone for the long-awaited LNG terminal at Kochi is likely to be laid soon , according to the reports from union power minister P M Sayeed''s office.

Sayeed conveyed this message to chief minister A K Antony after receiving a memorandum in this regard from him. The power tariff in the State would come down after the completion of the LNG terminal as the NTPC project in Kayamkulam has been decided as the anchor load consumer. The State Government has agreed to lower sales tax for the LNG terminal.

The Rs 1,600 crore, 2.5 million TPA project, had been delayed due to the dispute between the power ministry and the petroleum ministry for undertaking it. Recently, petroleum minister Mani Shanker Aiyar had said the issue would be sorted out with Sayeed soon.

LNG project will help the economy in general and especially industrial and power units. The revival of FACT and other units will be much easier with the LNG terminal completion.

Antony also met union finance minister P Chidambaram and submitted a detailed memorandum. Kerala urged the full Central assistance as grants and writing off of dues to the Centre. It wanted the state to be allowed to pose projects to donors. Assistance received for projects from multilateral and bilateral agencies may be passed down on the same terms and conditions available to the Centre.

The memorandum wanted the permission to States to enter market for raising loans. Fifty percent of the outstanding loans from the National Savings stream may be written off , it urged.