The Tamil Nadu government is planning to set up two 500-Mw LNG-based power plants to address the electricity shortage in the state.

One of the plants would be set up near the five-million-tonne-per-annum Indian Oil Corporation terminal that was set up after a memorandum of understanding was signed. The second plant plans to take advantage of GAIL’s Kochi-Bangalore LNG pipeline, which passes through Tamil Nadu.