Andhra CM urged to ensure gas supply to power projects

Andhra Pradesh Chief Minister N. Chandrababu Naidu Monday assured power producers that he would use his good offices at the centre to get gas for power projects lying idle in the state.

A delegation from the Association of Power producers led by its president Ashok Khurana and including Anil Ambani of Reliance ADAG met Naidu at his camp office here.

The delegation said there was an urgent need of gas supply to gas-based plants with a capacity of 2,233 MW which were idle without gas supply and also another 4,061 MW capacity plants for lack of allotment.

In all, Andhra Pradesh has 7,579 MW capacity gas-based projects of which power generation is underway in only 1,285 MW plants, said a statement from the chief minister's office.

The association also requested Naidu to use his good offices to promote LNG terminals at Gangavaram and Kakinada ports, reduce VAT on gas by two percent and also interact with the central and Gujarat governments to get additional gas to be made available from new ONGC/GSPC fields to power projects in Andhra Pradesh on priority basis.

The power producers also wanted Naidu to have a meeting with Prime Minister Narendra Modi to discuss burning issues of the power industry.

The delegation included G.V. Sanjay Reddy of the GVK Group, Lanco chairman Madhusudhan Rao and GBS Raju of the GMR Group.