In 12th Plan, power units near pipelines to get preference

Central Electricity Authority (CEA) of India, which monitors power generation and utilisation across the country, has suggested that power projects coming up within a distance of 50 km from an existing or proposed gas pipeline should prequalify under the projects for gas linkage during the 12th Plan.

There was earlier no criteria in terms of area as to where the plant has to be located. Now, the CEA has suggested to ministry of power that plants proposed up to a distance of 50 km will be considered for pre-qualification. However, the projects where the distance is greater than 50 km, the developer will have to submit an undertaking that the interconnection with the pipeline will be his responsibility and at his cost.

This is a part of recommendations for allocation of gas in the upcoming plan.

The domestic linkage will also be provided upto 60 per cent of the requirements. The remaining could be procured through imports or spot purchases. The peaking power plants will be allocated gas to enable them to run for about 4-6 hours per day during peaking hours, according to revised suggestions of CEA.

CEA is also in the process of preparing a list for power projects for 12th Plan which will fall under the criteria set out by CEA and the ministry of power. Owing to shortage of gas, the ministry of power had decided to adopt criteria for recommending allocation of gas in 12th Plan.

The government has fixed a target of 100,000 Mw capacity addition for the 12th Plan with private sector likely to contribute 62 per cent.

For the 11th Plan, the earlier target was to add 75,000 Mw capacity, but it was later revised to 62,000 MW. It is unlikely the government will be able to add even the revised target for the 11th Plan.