GMR Infrastructure arm, APGDC sign pact for piped natural gas supply

GMR Infrastructure Thursday said its arm Kakinada SEZ has inked a pact with Andhra Pradesh Gas Development Corporation (APGDC) for the supply of piped natural gas.

"Kakinada SEZ, a subsidiary of GMR Infra, signed an MoU with APGDC to get access to piped domestic natural gas for its upcoming 10,500-acre zone," the company said in a filing to BSE.

With this development, Kakinada SEZ would be the first zone on the eastern coast of India to provide piped natural gas to all its industrial units.

The zone, which is located on the Vizag-Chennai Industrial Corridor, offers 8,521 acres of industrial land with another 1,879 acres earmarked for a Greenfield commercial port.

"This unique development will be a boon for gas-dependent industries like ceramics, glass, fertilisers and chemicals in this region. Since gas constitutes a major portion of their costs, a 30-40 per cent saving on gas price will yield significant competitive advantage.

"This is expected to attract significant overseas and domestic investments, giving a boost to 'Make in India' and 'Sunrise Andhra Pradesh' initiatives," Kakinada SEZ CEO Challa Prasanna said.

APGDC has agreed to lay a spur line from the main trunk line to the zone premises for facilitating piped gas access to commercial and industrial customers.

APGDC, which is the authorised entity by Petroleum and Natural Gas Regulatory Board (PNGRB) for laying, operating and expanding gas distribution network in AP, is executing the Kakinada-Srikakulam high-pressure Natural Gas Pipeline (KSPL) to facilitate the supply of gas for industrial use.

The work for phase I of KSPL is underway.