Reliance Power seeks Reddy's help on gas allocation for Samalkot project

Inspired by the recent change in leadership in the petroleum ministry, the Anil Ambani-led Reliance Power Limited (RPL) has, once again, knocked on the ministry`s door for the urgent allocation of 9.6 MMSCMD of domestic natural gas, to fuel its 2,400 MW Samalkot expansion project in Andhra Pradesh.

• The Group President, A N Sethuraman, has shot off a letter to the newly-appointed Petroleum Minister, S Jaipal Reddy, to reiterate its demand that the ministry arrange gas supplies for the power project either from pre-NELP blocks or NELP blocks, as the project is likely to be commissioned within the current year.
• If the company`s claims are to be believed, the project can be commissioned by November 2011, assuming fuel supplies on time.
• Out of the total gas requirement, around 6.4 MMSCMD of gas would be needed in 2011, with another 3.2 MMSCMD required in January 2012.
• This project is being installed at an estimated investment of Rs 10,000 crore to add to the 11th Plan capacity addition programme and RPL has already achieved various intermediary milestones, like the grant of environmental clearance for 1,200 MW capacity.
• It also already has PGCIL`s approval to connect the plant to the Vemagiri-II pooling station, via a 2x400 kV quad DC line. It has further obtained the water allocation for the entire plant.