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GMR Infrastructure Ltd. subsidiary Kakinada SEZ inks MoU with APGDC for supply of piped natural gas
  • Kakinada SEZ would be the first on Eastern Coast of India that will provide piped Natural Gas supply to all its industrial units
  • APGDC & Kakinada SEZ have assessed the requirement of gas of around 0.5 MMSCMD in the initial two years with subsequent ramping up to 2 MMSCMD

Amravati / New Delhi, 11th October 2018: Kakinada SEZ Ltd., a subsidiary of GMR Infrastructure Ltd., signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Gas Development Corporation (APGDC) to get access to piped domestic natural gas for its upcoming 10,400-acre zone.

With this development, Kakinada SEZ would be the first zone on Eastern Coast of India that can provide piped Natural Gas supply to all its industrial units.

The zone, which is located on the Vizag-Chennai Industrial Corridor offers 8521 acres of Industrial land with another 1879 acres earmarked for a Greenfield commercial port.

Kakinada SEZ lies 6 kms away from the Kakinada Srikakulam Pipeline. APGDC has agreed to lay a spur line from the main trunk line to the zone premises for facilitating piped gas access to commercial & industrial customers. APGDC, which is the authorized entity by PNGRB for laying, operating and expanding Gas Distribution Network in Andhra Pradesh, is executing the Kakinada Srikakulam high pressure Natural Gas Pipeline (KSPL) to facilitate supply of gas for industrial use. The work for 90 kms of Phase I of the KSPL pipeline originating at Kakinada is already underway

Based on the industry demands, APGDC & GMR group have assessed the requirement of gas of around 0.5 MMSCMD in the initial two years with subsequent ramping up to 2 MMSCMD in 10 years.

Commenting on the development, Mr. Challa Prasanna, CEO, Kakinada SEZ said,This unique development will be a boon for gas dependent industries like ceramics, glass, fertilizers and chemicals in this region. Since gas constitutes a major portion of their costs, a 30-40% 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 is going to be immensely benefitted as the ONGC plans to investment a whopping USD 5 Bn in its ultra-deep water DNW-98/2 field in the Krishna Godavari basin, which is expected to produce 15 MMSCMD of gas and have a land fall point near Kakinada.

About GMR Infrastructure Limited (GIL):

GMR Group, a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure, is listed on Indian Stock Exchanges.

GMR Group Airport portfolio has around 160 mn passenger capacity in operation and under development, comprising of India's busiest Indira Gandhi International Airport in New Delhi, Hyderabad Rajiv Gandhi International Airport, Mactan Cebu International Airport in partnership with Megawide in Philippines. While greenfield projects under development includes Airport at Mopa in Goa and Airport at Heraklion, Crete, Greece in partnership with GEK Terna. The GMR- Megawide consortium has won the Clark International Airports EPC project, the second project in Philippines. Recently GMR has emerged as the highest bidder for the privatisation of Nagpur Airport. GMR is developing very unique airport cities on the commercial land available around its airports in Delhi, Hyderabad and Goa.

The Group Energy business has a diversified portfolio of around 6,800 MWs, of which 4,500 MWs of Coal, Gas and Renewable power plants are operational and around 2,330 MWs of power projects are under various stages of construction and development. The group also has coal mines in Indonesia, where it has partnered with a large local player.

Transportation and Urban Infrastructure division of the Group has six operating highways project spanning over 2,000 lane kms. The Group has a large EPC order book of railway track construction including Government of India marquee Dedicated Freight Corridor project. It is also developing multi-product Special Investment Regions spread across ~2100 acres at Krishnagiri in Tamil Nadu and 10,400 acres at Kakinada in Andhra Pradesh.

GMR Group, through its Corporate Social Responsibility arm, GMR Varalakshmi Foundation carries out community based development initiatives at 27 different locations across India and abroad.

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For Further Information, please contact:

Yuvraj Mehta
Group Head & VP Corporate Communications
E mail:
Mobile: 9350188469

Srimanth Reddy
AGM Corporate Communications
E mail:
Mobile: 8142818999

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