March 3, 2016 [Times of India] - he AP government has given in-principle approval to Krishnapatnam Port Company Limited (KPCL) to set up a floating storage and regasification terminal (FSRT) on build, operate, share and transfer (BOST) basis.
The FSRT will be set up by Malaysian firm IHSB (Isomeric Holdings Sdn Bhd) and LEPL Ventures Private Limited consortium. They have proposed to undertake regasification terminal in Krishnapatnam port under BOST through a private funded initiative mechanism to ensure adequate supply of gas to the power and the industrial sectors in the state.
According to the AP ports department, the project is expected to involve foreign direct investment of about USD 2 billion. It will be ready in about 18 months.
The consortium will have to come out with a feasibility report, a detailed project report and environmental impact assessment of the project. The DPR should also indicate the capacity of the project and location at Krishnapatnam port. The director of ports will form a technical committee comprising experts to evaluate the appraisal report.
Orders issued by the energy, infrastructure and investment department on Tuesday said, “Final approval will be given to KPCL to sub-lease its facility for setting up of FSRT through BOST model consistent with concession agreement only after taking inputs from the technical committee report.”
The development comes close on the heels of Kakinada port receiving the green signal from the Union ministry of environment, forests and climate change for development of the floating storage regasification unit based LNG terminal.
