GAIL has received approval from the Indian Government for its plan to develop a 380MW gas-based power plant in the Guna district of Madhya Pradesh.
The project will be located within 1km west of the Agra-Mumbai highway, within GAIL's existing LPG manufacturing facility-cum-compressor station at Vijaypur.
Times of India cited an Indian environment ministry official as saying that the formal clearance has been given, leading the way to start construction by GAIL.
"Expert Appraisal Committee (EAC) had cleared it after environment impact assessment of the project in its last meeting in May," the official said.
The power plant project, which received terms of reference (ToR) approval in June 2011, is scheduled to be constructed at an estimated cost of INR12.09bn ($200.9m).
In addition to employing nearly 200 people during the construction phase, the plant will employ around 100 people during the operational phase of the project.
The approval follows the decision made by the ministry under the new government to issue clearances on priority to defence-related projects and those of state-owned companies.
Additional green approvals are expected in near future for power/mining projects and key infrastructure projects.
Earlier, the ministry approved a major naval infrastructure project at Karwar in Karnataka, a radar station at Narcondam in Andaman and Nicobar Islands, and other coastal facilities along both the eastern and western coasts.
Moreover, the ministry also decided to advance border road projects, which are located within 100km of the Line of Actual Control (LaC) along the India-China border.