Petronet LNG Ltd, India’s largest natural gas importer, is in talks to set up a Rs 3,500-crore power plant adjacent to its upcoming liquefied natural gas import facility at Kochi in Kerala.

Petronet had proposed to set up a 1,200-Mw gas-fired power plant, a 50:50 joint venture with the Kerala government, sources privy to the development said. Kerala, which faces power shortages, is willing to partner Petronet and the land it would give for setting up of the power plant would be considered as part of its equity contribution in the project.