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As gas-based power projects continue to suffer for want of cheap fuel, Gujarat International Financial Tech-City (GIFT) has decided to go slow on its gas-based power project.
The ambitious infrastructure project is designed to have a gas-based power project with a capacity to generate 200 megawatt (Mw). However, considering the challenges associated with the gas supplies, GIFT management has decided to begin the project with a smaller capacity of around 5-10 Mw initially.
"In the current circumstances, full-capacity power plant doesn't seem to be a viable option. Therefore, initially we will go ahead with a lesser capacity unit of 5-10 Mw," said R K Jha, director, GIFT.
"Gas will be sourced from Gujarat State Petroleum Corporation (GSPC). A long-term agreement will be signed once we finalise a partner to develop the project. Soon, we will invite the bids from the interested players," Jha said.
GIFT has invited request for proposal (RFP) for consultancy services for Preparation of Techno-Economic Feasibility Study for setting up the gas-based project. The project will be developed under GIFT Power Company Ltd, which will also be the power distributor in the notified area of 886 acres of GIFT city.
"This gas-based power project is being developed as an emergency power source. The normal power supply will happen through Gujarat Energy Transmission Corporation Ltd (GETCO)," he said.
According to sources in the Gujarat Urja Vikas Nigam Ltd (GUVNL), state power distribution utility, 5000 Mw of gas-based power projects are lying idle. "Not much gas is allocated for state gas-based utilities. And also spot gas prices are so high that no off take is taking place. At this juncture, a new gas-based power plant is not a feasible option," said a source in GUVNL.
Once fully occupied, GIFT will require 800 Mw of power. According to GIFT officials, one of the two 29-storey towers is already launched and government agencies and private companies have started occupying space. "Some more are likely finalise by December this year. Many major companies have recently come and visited the site," Jha said.
