The delay has been dragging the project work leading to time overrun as the promoters, kicking off the project before more than a year, could not take possession of the land.

The project, however, has crossed a major milestone with the Kerala State Pollution Control Board giving its no-objection certificate for the mega LNG storage and distribution venture.

Petronet Kochi had sought 50 hectares of land from Cochin Port Trust (CoPT) for setting up its 2.5 million tpa terminal at Puthuvypu, a few kilometers off Kochi mainland. The port trust in turn agreed to the request and earmarked the required land for the venture. However, problem started with CoPT asking for a staggering Rs 30.88 crore for the land. Petronet Kochi pointed out that the land cost sought by the port authorities was on the higher side and requested for paring it down. Petronet made its case by pointing out that if the land cost was pegged at the higher level, the entire project cost would go up leading to a subsequent hike in gas prices.

Besides, KoPT would be benefitted from the project directly from the deepening of the channel which would help it accommodate bigger ships. The deepening of the channel would also give an impetus to the proposed Rajiv Gandhi Container Terminal planned by CoPT near here.

Following the Petronet objection, the case was referred to Tariff Regulatory Commission on Ports long back. The chairman of the commission had visited Kochi and heard the case presented by both sides and agreed to arrive at a quick decision on the matter. However, a couple of months down the line, the decision is still pending before the tariff panel leaving the promoters of the project high and dry.