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The EC and CRZ to the Rs 3,500 crore project, where GSPC LNG Ltd has majority stake, has been delayed owing to the litigations pending against Adani Port where the terminal in proposed to be set up.
Gujarat Petroleum and Energy Minister Saurabh Patel on Saturday had said that Mundra LNG terminal which is one of the two planned LNG projects in the state, would be commissioned by 2016. The minister had further said that GSPC planned to source gas from Australia and Egypt for this terminal.
The Expert Appraisal Committee (EAC) of Ministry of Environment and Forests (MoEF) deferred decision on the EC and CRZ clearance to GSPC LNG in June, following certain observations and recommendations made by an MoEF committee with regard to Adani port development where the LNG terminal is to come. The EC and CRZ clearance has been deferred till a final decision is taken on the recommendation of the committee by the MoEEF.
During its meeting held in June the EAC noted "Proposed development of LNG Terminal at Mundra Port, Kutch, Gujarat in within port facilities of M/s Adani Port where there are various representations against the Port facility and few cases are also pending in the High Court of Gujarat."
The EAC further noted that the MoEF had constituted a Committee under the Chairmanship of Sunita Narain in September, 2012 to examine the allegations against Adani port. "The Committee has submitted its report on April 18, 2013. There are certain observations and recommendations with regard to the port development where the LNG terminal is to come. MoEF is yet to take a view on the recommendations of the committee," the EAC observed.
In view of this the EAC recommended "to defer the proposal till a final decision (by MoEF) is taken on the recommendation of the above committee (headed by Sunita Narain)".
The company officials of GSPC LNG could not be contacted despite repeated attempts.
In April this year, the committee headed by Narain set up by the MoEF had held that Adani Port and Special Economic Zone (APSEZ) Ltd had violated environmental clearance conditions and recommended imposition of penalty on the company which is part of the Rs 40,000 crore Adani Group promoted by billionaire Gautam Adani.
The APSEZ Ltd and Adani Power Plant project has been in the eye of the storm for its massive adverse ecological impacts, with several litigations filed by local villagers from Mundra block against the projects. Based on complaints received, the MoEF had set up the Committee to examine allegations of environmental destruction and non-compliance, including distortion of the original High Tide Line/Low Tide Line by the company. The five-member committee, headed by environmentalist Sunita Narain, included officials from the MoEF and experts on coastal ecosystems and disaster management.
Even the Gujarat High court while acting on a public interest litigation (PIL) by villagers of Mundra block in May 2012 had stayed all kind of development or construction activity in the APSEZ till the company gets EC and CRZ from the regulatory authorities.
GSPC LNG Limited was set up in 2007 to develop a LNG receipt, storage and regassification terminal at Mundra in Gujarat. The terminal shall have initial capacity of 5 MMTPA (million metric tonne per annum) with provision to expand to 10 MMTPA and ultimate expansion shall lead to capacity of 20 MMTPA. The 5.0 MMTPA LNG terminal is designed to have a berth for receiving LNG tankers of sizes 75,000 cubic meter to 260,000 cubic meter, two LNG storage tank, facilities for regasification and gas evacuation facilities to name a few.
According to GSPC LNG website its has completed the pre-project activities including Front End Engineering and Design (FEED) and other studies. It is now in process of selecting EPC (Engineering, Procurement, Construction) contractors for the project through international competitive bidding route. At present, there are two LNG terminals in the state- one at Hazira in south Gujarat and the other at Dahej with combined capacity of over 13 MMTPA. Besides, Mundra another LNG terminal is proposed at Pipavav port, which will have 2.5 MMTPA to 5 MMTPA capacity.
