Tamil Nadu Industrial Development Corp Ltd (Tidco) has announced plans to spend around $1.4 billion developing petrochemical and gas production infrastructure in the Cuddalore-Nagapattinam belt in India.

The firm's chairman and managing director S Ramasundram outlined the plans on the back of signing a gas cooperation agreement with the Gas Authority of India Ltd (GAIL), explaining that the country's central government would help with the work, though further investment may be required in the future.

Under the agreement, the state-owned Gail will carry out a preliminary feasibility study for gas demand in the region, while also looking into the pipeline needs of the state.

GAIL chairman and managing director U.D. Choubey noted: "The agreement between GAIL and Tidco would help in preparation of future roadmap for realising the natural gas potential in Tamil Nadu."

Reporters were also advised that Tidco is looking into developing a petrochemical plant at Nagapattinam, with Chennai Petroleum Corp having been asked to consider the region as an alternative location to Ennore for its planned Greenfield refinery and petrochemical complex.