Power min recommends 8 MMSCMD D-6 gas allocation for 2100 MW worth of state-sector power projects

In a move to negate charges of favoritism to private sector power developers with respect to gas allocation leveled against the Ministry of Power (MoP) by some quarters, the ministry has now made it a point to recommend 8.02 MMSCMD of gas from Reliance Industries` KG D-6 block to three public sector power projects worth a capacity of 2,100 MW. The break-up of gas requirement for these three projects is as follows:

• 1.30 MMSCMD for Puducheery Power Corporation Limited`s 350 MW Yannam gas-based power project.
• 3.92 MMSCMD for NTPC`s 1,050 MW Kayamkulan Stage-II project in Kerala.
• 2.8 MMSCMD for Andhra Pradesh Power Generation Corporation`s 700 MW Karimnagar project.
• Alongside, the MoP has asked the Ministry of Petroleum and Natural Gas (MoP&NG) to allocate an additional gas quantum of 0.90 MMSCMD to Ratnagiri Gas and Power Private Limited`s (RGPPL) Dadhol power project in Maharashtra.
• Besides, the power ministry has reiterated its stand that for commencement of gas supply to all private sector projects, power purchase agreement covering least 85% of allocated gas-based generation should be a pre-condition.
• The MoP has also requested that the MoP&NG not make sub-optimum allocations of gas to any power project, as that creates financial and commercial complications for such projects.