Public sector Gas Authority of India Limited (GAIL) has proposed to establish a gas pipeline grid in Andhra Pradesh.
The proposal was highlighted by GAIL chairman and managing director BC Tripathi who called on Andhra Pradesh chief minister N Chandrababu Naidu today here today.
“The proposed pipeline would cover Srikakulam-Kakinada-Nellore districts besides linking Tumkur in Karnataka with Nellore via Hindupur in the Rayalaseema region,” said Parakala Prabhakar, adviser to AP government (communications).
While the length covered by the pipeline and the capacity did not come up for discussion, GAIL, however, would take up a detailed project report soon.
“Once the project report is finalised, the state government would initiate the land acquisition process. The pipeline is an overriding priority for the state,” said Prabhakar.
The earmarked gas from the pipeline would significantly boost the industrial activity and aid the state government's efforts for augmenting power supply.
The development comes against the backdrop of Naidu announcing his vision to develop the state’s coastline into a logistics hub of the country’s east coast.
Naidu in the meeting also raised the Cabinet’s decision last week to induct multinational oil major Shell with a 26 per cent equity in the proposed special purpose vehicle (SPV) for setting up a liquefied natural gas floating, storage and re-gasification unit (FSRU) at Kakinada. GAIL is a joint venture partner with the AP Gas Infrastructure Corporation in the project.
The GAIL chairman also also proposed to set up a skill development centre in the state.
With respect to the June 27 gas fire and blast in the Nagaram village of East Godavari district that claimed 19 lives besides raising doubts on the safety of company's pipeline network, Tripathi agreed to disburse a sum of Rs 2.5 lakh for those injured in the accident and pay an amount of Rs 6,000 under crop losses for each of the damaged coconut trees.
GAIL officials, led by its general manager Vishwanath, also held a meeting with zilla parishad officials in Kakinada to examine the damages caused due to the blast.
Villagers and local leaders urged company officials to re-build the damaged homes and offer job opportunities for the family members of the deceased as part of the rehabilitation programme.
GAIL in a release had stated it would adopt Nagaram and develop it as model village with all amenities.
