Govt for allocation of gas to ADAG power project

The Power Ministry has favoured allocation of the bulk of new natural gas output from fields like those of Reliance Industries to Anil Ambani-run Reliance Power's Samalkot expansion unit in Andhra Pradesh.An Empowered Group of Ministers (EGoM) considered the issue of giving gas to 10 projects, including 8 mmscmd to the 2,400-Mw Samalkot unit, and asked the ministry to obtain the Central Electricity Authority's assessment on completion of the project.

Sources said the CEA has already made queries and Reliance Power has provided all information.

The EGoM, however, did not make any new allocation as additional output of 20 mmscmd from RIL's eastern offshore KG -D6 fields was only expected in 2012-13, while state-owned Oil and Natural Gas Corp (ONGC) was to produce around 9 mmscmd more gas in 2011-12. Another 8 mmscmd is expected to be available from GSPC's KG Basin fields in 2012-13.

Sources said the Power Ministry told the EGoM that Samalkot, along with nine other plants, was expected to be commissioned in the current Five-Year Plan ending March 31, 2012.

The ministry, at the last meeting of the EGoM on July 27, sought allocation of 15.59 mmscmd for six projects totalling 4,066 Mw that were to be commissioned by end-2011. Another 14,50 mmscmd was sought for four projects, including Samalkot, on the grounds that these projects have most approvals and would be commissioned by March 31, 2012.

It recommended the allocation of 8 mmscmd gas for the 2,400-Mw expansion project planned by R-Power at Samalkot, saying the project had environmental clearance, besides "land, water and all other infrastructure facilities". Also, it has executed an EPC contract on July 21, 2010.

The ministry sought 4.48 mmscmd gas for the 1,200-Mw project Torrent Power is setting up at the Dahej SEZ in Gujarat, 0.4 mmscmd for the 100-Mw unit of Pandurang Energy Systems in West Godavari District of Andhra Pradesh and 1.62 mmscmd for the 436-Mw plant of RVK Energy in East Godavari District, also in Andhra Pradesh.All the four projects, according to the Power Ministry, would be commissioned during the current XIth Five-Year Plan period (2007 to 2012).

Sources said the EGoM did not make any allocation to any plant as RIL had informed that it cannot produce more than 60 mmscmd gas from KG-D6 at present.All of the current output of 60 mmscmd from KG-D6 has already been allocated to urea manufacturing units, power plants, LPG units, city gas projects, steel plants and refineries.