R-Power not in priority list for next RIL’s D6 gas flow

NEWDELHI: Anil Ambani-owned Reliance Power does not figure in the first sixcompanies that will get gas on priority from Reliance Industries’ KG-D6when output from the block goes beyond the current capacity of 60 mmscmd, apower ministry official told ET.

The list, which is being finalisedby the ministry, includes GSPC’s 700 mw Pipavav power project, GujaratState Energy Generation Ltd’s 350 mw project at Hazira, Pragati PowerCorporation’s 1,000 mw Bawana power project, Lanco’s 740 mwKondapalli Phase III, GMR’s Vemagiri expansion project, andUttarakhand’s Kashipur project.

“The list will besubmitted to the empowered group of ministers (EGoM). Priority is given to theseplants as they will be commissioned between 2010 and 2012,” an officialsaid, requesting anonymity.

If the EGoM accepts the recommendationsof the power ministry, it may delay Reliance Power’s plans of setting upabout 8,000 mw gas-based power projects in the country as the next allocation ofgas will happen only in 2012. The company had earlier told the power ministrythat it plans to commission its projects by March 2012. An email sent to aReliance Power spokesman did not elicit a reply, though the spokesman confirmedthat he had received the mail.

A government official said a second list of companies that willget natural gas is likely to be announced next year and it is possible thatReliance Power will figure in that list. Reliance Power’s 2,400 mwSamalkot project in Andhra Pradesh has been identified by the power ministry forallocation of about 8 mmscmd gas from KG-D6 for 2012-13, he said.

“The second list is not yet finalised and will depend on theverification of the commissioning schedule,” a power ministry officialsaid.

The EGoM, in its meeting on Wednesday, did not allocate gas toany new power plant and decided to ask fertiliser and power ministries toprepare a new list of projects that would require gas on an urgent basis.“The prioritisation is being done due to scaled-down projection of gasflows from the KG basin,” an oil ministry official said.

Thefirst priority list prepared by the power ministry is based on around 16 mmscmdgas supply to run six plants at 70-75% capacity, the power ministry officialsaid.

source : economictimes.indiatimes.com

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Submited at Friday, July 30th, 2010 at 10:19 am on News by jessica
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