Slow gas-based capacity addition: PowerMin to NTPC

The Union Power Ministry has asked NTPC, the country's largest electricity generator, to slow down its gas-based capacity addition plans. The directive comes at the back of a historic decline in the production from the KG-D6 block of Reliance Industries, which has raised doubts over the viability of upcoming gas power plants. "We have received a clear directive from the power ministry, asking us to slow down new gas-based capacities. We will not be able to commission 4,500 Mw capacity in the 12th Plan period due to a lack of gas," NTPC Chairman Arup Roy Choudhury told Business Standard.

The constrained availability of gas, coupled with coal issues, have forced the generator to trim around 15,000 Mw from its original 12th Plan target of adding 25,000 Mw capacity by 2017. The company has projected a 57 per cent decline in annual capacity addition from 4,160 Mw achieved in 2012-13 to 1,800 Mw in the current financial year. NTPC has a current gas-based capacity of above 4,000 Mw.

While this requires over 17 million standard cubic metre per day (mmscmd) of gas, only 50 per cent of this demand is being met through the nominated fields of state-run ONGC and Oil India Ltd (OIL). "We used to get 2.6 mmscmd of gas from KG-D6 earlier. Now, the supply has come to nil," an NTPC official said.

Natural gas output from the KG-D6 field touched a new low of 15.5 mmscmd this month. Of this, around 13.50 mscmd is being sold to urea manufacturing fertiliser plants and 2.29 mmscmd being consumed by LPG manufacturing plants. No sale is being made to power plants.