Karimnagar power project hangs in balance as EGoM meet put off

Though the petroleum ministry had indicated to the state power utility that its 700 Mw Phase1 project proposed in Karimnagar would be given firm allocation this time owing to a rise in production of natural gas from the wells operated by ONGC and Cairn India, the project is back to square one with the calling off of the meeting of the EGoM scheduled on Thursday (June 9).

APGenco has been waiting for allocation of gas to take forward the project, which was proposed with 2,100 Mw capacity in two phases. This was listed on the agenda of the EGoM since last year.

A couple of days ago chief minister N Kiran Kumar Reddy had again written to the petroleum ministry requesting the Centre to allocate natural gas for the project in the light of the scheduled meeting.

Keeping in view the relaunch of agitations in favour of separate state starting this month, the government is keen to get the nod from the EGoM as the project has been proposed in the Telangana region. The government wants to showcase the project, among other things, to keep the raging sentiments of political and other organisations from the region under check.

According to a senior official of APGenco, petroleum minister S Jaipal Reddy, who hails from the Telangana region, has positively responded to the government’s request for allocation of natural gas. New allocations were not being made following a letter written by Reliance Industries (RIL), the operator of the K-G D6 block, owing to supply constraints last year. However, the petroleum ministry has taken a fresh look at the situation after the reported rise in production to the extent of 9 mmscmd (million metric standard cubic metre per day) gas from the wells operated by ONGC and Cairn.

In the light of this, the power utility was hopeful of receiving the allocation of 3.1 mmscmd gas to execute Phase I, of the 9 mmscmd that is required for the project under both the phases. APGenco had formed a special purpose vehicle — AP Power Development Company — in a joint venture with the discoms for setting up the gas power project.

“This is the fifth time that the state has approached the Union Government for allocation of natural gas for the project. We really don’t know whether the EGoM will clear our request,” a senior government official in the energy department said.