UJVN to form joint venture with GAIL

Uttarakhand Jal Vidyut Nigam Limited (UJVN), the state-run hydropower company which is venturing into gas-based power sector, would form a joint venture (JV)with GAIL to set up two power plants in Uttarakhand.

UJVN would also seek the Cabinet’s approval in this regard, principal secretary power Alok Jain told Business Standard. “We are in the process of finalising these two projects,’ said Jain. The joint venture would only be formed after the approval of the state Cabinet.

In June this year, UJVN had signed an MoU with GAIL to set up two gas-based power plants of 350 Mw each. A total of Rs 2,500 crore is proposed in the two power plants at Kashipur and Haridwar towns.

The majority of the power from these power plants would be sold to Uttarakhand through a long-term power purchase agreement (PPA), Last week, Chief Minister B C Khanduri held talks with GAIL CMD B C Tripathi at New Delhi regarding the two gas-based power projects.

With the hydropower sector taking a beating due to heightened environmental and religious concerns in India, several hydropower companies have now chalked out plans to diversify.

Meanwhile, GAIL has already commenced construction of its Karanpur – Moradabad –Kashipur –Rudrapur/Pant Nagar Natural Gas Pipeline which will be of 182 km in length. The estimated investment in the project is Rs 250 crore.

The design capacity of the pipeline will be 2.5 MMSCMD.

The pipeline will supply gas to upcoming power plants in Kashipur in Uttarakhand and to other industrial customers in Moradabad, Kashipur and Rudrapur and for city gas distribution in Moradabad.

Similarly, GAIL is also bringing another pipeline from Saharanpur to Haridwar.