Andhra Pradesh government to set up Rs 1000-crore gas storage facility
IT towers to come up in 3 major cities.
Vijayawada: The AP state Cabinet has decided to set up a gas storage plant at Kakinada at an estimated cost of Rs 1,010 crore, of which Rs 800 crore would be collected as financial aid from various sources. The Cabinet, which met here on Tuesday for more than four hours, decided to complete the project by 2018.
AP does not have a gas storage facility and for every metric tonne, it spends about $2 to import gas from the western parts of the country. The proposed gas plant at Kakinada will generate employment for one lakh youth and will supply gas to industries between Kakinada and Srikakulam. The AP Gas Development Corporation has submitted a proposal to the Cabinet that it intends to set up this facility at Kakinada, with 50 per cent share of GAIL, and the other half divided between APGIS, comprising APIIC and AP Genco. The AP Gas Corporation has said that it will go for Rs 800 crore advance, against the actual cost of Rs 1,010 crore.
The Cabinet also has approved construction of IT towers at Vijayawada, Visakhapatnam and Tirupati on 10 lakh sq. ft. in each city under the PPP mode, through the investments and infrastructure department. The state government will provide rental guarantee for the towers and the Cabinet fixed a time frame of six months to one year to construct these towers.