Karnataka fast-tracks plans for 3,000 Mw gas-based plants

The Karnataka government on Friday offered 3,000 Mw of gas-based power projects at a cost of Rs 12,000 crore to the private sector for investment. Of this, 2,100 Mw has been split into three projects of 700 Mw each. They have been put on the competitive bidding route while 900 Mw has been offe-red on a merchant basis that is to be developed by private parties with the projects ranging from 50 Mw to 300 Mw respectively.

The request for qualification (RFQ) documents were released to the intending bidders on the second day of the Global Investors’ Meet (GIM) by V S Acharya, Karnataka minister for home, here on Friday. The selection of the successful bidder will be based on the tariffs quoted as per the Case-2 guidelines issued by the Union ministry of power, K Jairaj, additional chief secretary, energy department, said.

The location of the bid route projects have been identified in the districts of Belgaum, Gadag and Davanagere where land and water sources have been identified. The locations are in the vicinity of the proposed gas pipeline to be developed by the Gas Authority of India Ltd (GAIL) from Dabhol to Bidadi. The merchant power producers are free to identify locations on their own near the pipeline to source gas from it.

The Power Company of Karnataka Ltd (PCKL) had floated an expression of interest (EOI) inviting pros-pective developers to indicate their interests for the projects earlier this year. For the bid route, 51 EOIs have been received. The RFQs were given to these bidders today. The selection of bidders is expected to be completed in the next six months.Similarly, for merchant power, 84 EOIs were received. However, the state government will not sign the power purchase agreement with the parties. Instead, the merchant power producers are free to sell their power within and outside the state by paying the requisite wheeling and banking charges under open access regulations. The state may impose a condition that upto 25 per cent of power produced should be given at the rate to be decided by the Regulatory Commission.

The offer to set up power plants for 3,000 Mw for the private sector is being made possible because of the 800 km gas pipeline being developed by GAIL from Dabhol to Bidadi at an estimated cost of Rs 5,000 core. The MoU for this pipeline project was signed between GAIL and the state government in April, 2009. A high-level group has been set up by the state for implementing the pipeline, Jairaj added.

The pipeline will be commissioned by March 2012 and in the first phase, it will supply 16 million standard cubic metres. It also has a provision for connectivity with the K-G Basin gas via Bijapur and Gulbarga, Prabhat Singh of GAIL said.

Karnataka is actively pursuing projects in the energy sector to secure energy self sufficiency by 2015. The state-owned Karnataka Power Corporation Limited plans to add nearly 10,000 Mw of power in the next five years from hydel, solar, thermal, gas and wind.