The government, however, rejected the proposal of Gangavaram Port to collect the water front charges from Petronet at the rate of INR103.68 per metric ton of LNG cargo handled, Press Trust of India reported.
Petronet, which is a joint venture between GAIL (India), ONGC, Indian Oil and Bharat Petroleum Corporation, aims to import LNG and launch LNG terminals in the country with an investment of $748m.
Earlier, Gangavaram Port and Petronet signed a firm and binding term sheet for developing a 5MMTPA LNG Terminal with a provision to expand further to 10MMTPA.
The Gangavaram LNG terminal would address the growing energy need of the state while catering to the increasing gas requirements of eastern and central part of India.
A government order issued said "Government after detailed examination of the proposal in consultation with Law and Finance Departments and keeping in view the recommendations of the Empowered Group of Ministers, hereby accord approval to M/s Gangavaram Port Limited, Visakhapatnam District for establishing LNG Terminal at Gangavaram Port.
