As per reports, the “500MW gas-fired power plant” project in Tamil Nadu approved by Chief Minister J Jayalalithaa on Friday.

During Assembly speech, she granted application of setting up project the Tamil Nadu in which fuel will be supplied from Gas Authority of India’s Kochi-Bangalore pipeline.

The move comes after a MOU to set up pipeline infrastructure in the state, establish a joint venture company for generating the power, signed by GAIL and TIDCO in which mentioned that the 310km long Kochi-Bangalore pipeline will move across seven districts – Coimbatore, Salem, Erode, Tirupur, Namakkal, Dharmapuri and Krishnagiri.

Reintroducing the joint venture agreement of Indian Oil Corporation exchanging documents with TIDCO, the Chief Minister said, “When the terminal is put to operation in 2016, it will be able to distribute about 18 million cubic metres of natural gas every day.”

This agreement has signed in March this year to jointly implement a five million tonnes/ year capacity Rs 4500 crore LNG import terminal at Ennore Port.

“Tamil Nadu will also get a floating storage regasification unit in a southern coastal district which will cost Rs 2,500 crore,” Jayalalithaa said.

She further added in a statement, the state has granted package of 20,000 acres of land to be acquired for industrial investments across the state for setting up a hub for heavy engineering industries.

Setting up specified vehicle with well infrastructure in all newly building the zones, govt. has offered incentives for established city gas distribution networks in cities and towns in Tamil Nadu , also establishing retail networks for compressed natural gas (CNG) for transport sector, source said.

However no official report has revealed about the location of the 500MW gas-fired power plant , but it has said that this Power Project will cost Rs 2,000 crore and in future within five years by additional investment of Rs 10,000 crore , the plant’s capacity will be expanded.