EGoM to consider gas allocation to 6 power plants on Nov 10

An empowered group of ministers headed by Finance Minister Pranab Mukherjee is likely to meet on November 10 to decide on allocating natural gas from fields like Reliance Industries' KG-D6 to six upcoming power plants.

"The EGoM was previously scheduled to meet on November 2 but it has now been put off to November 10," a top government official said.

The panel, which had last met on July 28, is likely to decide on allocating gas to six power plants that have been certified by the Central Electricity Authority (CEA) of being commissioned by in the XIth Five-Year Plan ending March 2012.

"The six plants certified by CEA have a requirement of 15.59 million standard cubic meters per day of gas," he said.

EGoM is to consider allocating 4.67 mmscmd to 1,500 MW Bawana project in national capital, 3.08 mmscmd to Lanco's 770 MW Kondapalli expansion project in Andhra Pradesh, 3.07 mmscmd for GMR's 768 MW Vemagiri expansion project in Andhra Pradesh, 2.62 mscmd to 702 MW Pipavav project in Gujarat, 1.31 mmscmd to 351 MW Hazira unit of Gujarat State Electricity Corp and 0.84 mmscmd for 225 MW Kashipur project in Uttarakhand.

The official said seven other projects including Anil Ambani Group's 2,400 MW Samalkot expansion project in Andhra Pradesh may not be considered for allocation of gas just yet.

"Currently, only the plants that have CEA certificate of completion will be considered. There are seven other plants which say they will be commissioned by 2012 but those will be considered after CEA certifies their claims," he said.

The 2,400 MW expansion project planned by ADAG firm Reliance Power would need 8 mmscmd of gas.

The official said RIL is expected to reach 80 mmscmd of output from its eastern offshore KG-D6 fields sometime in 2012 or 2013. It currently produces about 57-58 mmscmd as opposed to close to 64 mmscmd of gas being allocated by the government to urea manufacturing units, power plants, LPG units, city gas projects, steel plants and refineries.

Besides state-owned Oil and Natural Gas Corp (ONGC) is to produce around 9 mmscmd more gas in 2011-12. Another 8 mmscmd is expected to be available from GSPC's KG Basin fields in 2012-13.

The seven plants awaiting CEA certification would in all need 20.96 mmscmd of gas. 4.48 mmscmd gas has been sought for the 1,200-MW project that Torrent Power is setting up at the Dahej SEZ in Gujarat, 0.4 mmscmd for the 100-MW unit of Pandurang Energy Systems in West Godavari District of Andhra Pradesh and 1.62 mmscmd for the 436-MW plant of RVK Energy in East Godavari District, also in Andhra Pradesh.

Another 1.4 mmscmd was sought for 382.5 MW Sugen Phase-1 in Gujarat and 2.53 mmscmd each for 800 MW Jegurupadu expansion and 800 MW Gautami Stage-II, both in Andhra Pradesh.