Andhra in talks with RIL for allocation of gas on priority

The Andhra Pradesh government is pursuing with Reliance India Limited and the Union ministry of petroleum and natural gas for allocation of natural gas to power plants in the state on a priority baisis. This would improve the power situation considerably in the state, said energy and coal minister Mohammed Ali Shabber.

Replying to a notice by CPI (M) MLA Nomula Narsimhaiah on power cuts in the state, he said the government had authorised APTransco for additional purchase of power from any available source up to Rs 10 per unit for an unscheduled interchange overdrawl. The Transco had purchased over 5,000 million units from traders, power exchange, bilateral purchases and from captive generators from April last year to January this year. The average cost of the additional power purchase was over Rs 7 per unit.

On agriculture and domestic sectors, he said they would be given priority in case of a power shortage. The load relief would be carried for other sectors and the effort would be to protect the standing crop by meeting the agricultural demand first during the rabi season.

The generation from the existing units has been maximised and the overhauls of APGenco thermal units have been postponed. The existing gas-based plants are now being run on naphtha and the gas thus saved is diverted to the new gas-based plants to bring additional power supply into the grid. All independent power producers have built up naphtha stocks for continuous supply of the fuel, he informed.

The government is also pursuing with the Centre for additional allocation from central sector units. A reduced share of 200 ME has already been restored during 2006-07.

APGenco is working to bring its units on to the grid ahead of the schedule. The 500 Mw unit of the Vijayawada Thermal Power Station and the 39 Mw unit at Jurala will be commissioned by March this year. The state now has an installed capacity of 12,424 Mw. It met a peak energy demand of 204 million units in January and a peak power demand of 9,374 Mw in October last year, he said adding that the energy requirement was 11 per cent more now and peak power demand was higher by eight per cent compared with the demand in the corresponding period last year, the minister said

Arrangements are being made through the power distribution companies to derate industrial supply where industries come forward voluntarily under agreed terms.