GAIL, Tidco sign pact for CNG corridor in chennai

Chennai: Gas Authority Of India Ltd and Tamil Nadu Industrial Development Corporation (Tidco) on Friday signed a gas co-operation agreement that will prioritise the setting up of a CNG (compressed natural gas) corridor in Chennai after Nagapattinam, Karaikal and Puducherry.

According to the agreement, GAIL will conduct techno-economic feasibility study for gas demand in industrial, commercial and transport sectors. The agreement between GAIL and Tidco will not be a joint venture but will facilitate steady supply of gas for industries and power plants in the state.

'We cannot give a time frame on when the corridor would come into existence as the exploration and other related works are on,' said a GAIL official.

He said the corridor would bring down pollution caused by oil-driven vehicles. The growing demand for a ‘cleaner' alternative fuel like CNG was also cited as a reason for setting up the corridor.

Tidco had also recently announced the setting up of a petro-chemical project at an investment of Rs 6,000 crore by the government.