concerned over the uncertainty surrounding the availability of gas for many ready-to-be commissioned power projects, former power secretary, R V Shahi, has asserted that gas allocation to the power projects must be made prior to the award of contracts or, at least, before the commencement of actual construction activities.- According to Shahi, the Ministry of Power (MoP) should not let the developers set-up gas-based plants without tying up gas supplies, either, from the Ministry of Petroleum & Natural Gas (MoP&NG) or from the open market.
- Shahi's anguish stems from a disturbing situation, in which three under-construction projects, worth 1,763 MW capacity, are likely to miss being commissioned within the 11th Plan Period, due to the unavailability of gas supplies.
- While these three-- Lanco`s 770 MW Kondapalli stage-III and GMR Rajamundry`s 768 MW Vemagiri projects in Andhra Pradesh, as well as, at Sravanthi Energy`s 225 MW Kahipur project in Uttarakhand-- need 6.99 MMSCMD of gas to operate, all the gas available at this time has already been allocated.
- Shahi feels that his suggestion would prevent generation capacity from idling, a costly scenario for the developer.
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