Adani Group plans to invest Rs 140 billion to build a 2,000MW gas-fired power plant and an LNG terminal at Mundra

After coal, Adani group has set its eyes on gas. It is firming up plans to invest Rs 14,000 crore to build a 2,000MW gas-fired power plant and an LNG terminal at Mundra where the company runs India's largest private sector port. This will be the group's first gas-fired power plant. While Mundra LNG will build the terminal with a handling capacity of five million metric tonnes in the first phase capacity would be scaled up to 10 million metric tonnes subsequently . Adani Power will execute power project. Last week, the GoI's board of approval cleared both the projects which will come up over 136 hectares of land at Mundra.

Adani group had formed a JV with state-owned Gujarat State Petronet to set up an LNG terminal. The project failed to take off. Now, the group is going ahead on its own to build the terminal , which will cater to the fast growing industries in Kutch and units in Mundra SEZ. The terminal will also cater to the CNG as well as PNG customers of north western part of the country.

“The foray by Adani in LNG terminal has synergy with its gas and power business . Mundra port has one of the deepest drafts and will be in a position to get large parcels of LNG from gas surplus areas in the Middle East,” said industry sources . The central government has been planning for movement of gas by setting up pipeline from Iran to India, which has not taken off due to variety of politico economic considerations.