Adani Group, Gujarat State Petroleum Corp to build Rs. 4500 crore Mundra LNG terminal by end 2016.

Adani Group and Gujarat State Petroleum Corp (GSPC) will set up a Rs. 4,500 crore LNG import terminal at Mundra SEZ in Gujarat by December 2016.

GSPC LNG Ltd., a unit of Gujarat government-owned GSPC, on July 24 won approval to become a co-developer of the multi- product special economic zone (SEZ) being developed by Adani Ports at Mundra, a move that will help trim cost by Rs. 700-800 crore, an official said.

Commerce Ministry's Board of Approvals (BoA) gave nod to GSPC LNG's proposal to 5 million tons a year LNG terminal together with storage and re-gasification facilities over an area of 28 hectares.

'By becoming co-developer, the project will now be entitled to duty-free imports which will help cut costs down by Rs. 700-800 crore from the previous estimate of Rs. 5,200 crore,' he said, adding that the terminal will be ready by 2016 end.

Once they avail duty free imports, the developers are required to sell a threshold of the produce to units within a SEZ.


ET