Notwithstanding the fact that NTPC has finally managed to evoke interest amongst the prospective Qatari stakeholders to invest funds in the 1,050 MW Kayamkulam Stage-II gas-based project in Kerala, the delay in signing power purchase agreements (PPA) for sale of expensive RLNG-fueled power from the project seems to come on the way of the much-awaited deal. 8After a joint appraisal of NTPC's proposal by the Qatari nodal agency for the proposed 40% equity infusion in the project, Qatar Petroleum International (QPI), and Qatar Electricity & Water Company (QEWC), the Qatari side has expressed their apprehensions about the prospects of sale of imported gas-based Kayamkulam-II power to the regional beneficiaries in their last meeting with NTPC in December 2010.
8To further assess the situation on ground, a delegation from Qatar is expected to visit the project site in the last week of this month.
8Importantly, NTPC has been persuading with the Qatar government since the year 2006 to assure gas supply and funds infusion to the Kayamkulam-II or Ragiv Gandhi combined cycle power project (RGCCPP) Stage-II.
8However, the delay in finalization of the deal with Qatar forced NTPC to arrange gas supply for the project from Gorgon of Australia, via Petronet LNG Limited (PLL), at an exorbitant rate of $21.1 per mmbtu, taking the cost of power generation to close to Rs 8 per kilowatt hour.
8The power firm has even offered Qatar to supply gas and buy stake in 1,050 MW expansion of RGCCPP-II and 2,100 MW expansion to NTPC's joint venture project-- Ratnagiri project in Maharashtra.
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