Reliance keen to supply gas for Dabhol project

The Dabhol power project may get another shot at revival with the petroleum ministry assuring gas or LNG supplies, and Reliance Industries expressing interest to supply LNG to the plant.

"The petroleum ministry has assured us of gas or LNG supplies starting end of March 2007," Power Secretary R V Shahi said on the sidelines of a Power Ministers' conference.

Meanwhile, sources said Reliance has also expressed interest in supplying 6-8 mmscmd of gas beginning from the second half of 2008. The gas would be supplied through the 1,385 km long Kakinada-Bharuch pipeline, sources added.

The government, in September, had asked the petroleum ministry to evaluate various options, including sourcing gas from RIL, for the project, which was shut down in July due to monsoon besides lack of naphtha to run the plant.

It was re-started again on November 1, but only the 740MW block-II of the 2,184MW project is being run on imported naphtha as the new promoters, GAIL and NTPC, have not been able to sign deals for natural gas. With naphtha being used, the cost of generation is likely to be more than Rs 5 per unit.

11th Plan power capacity addition target is 75,000MW

The target for capacity addition in the power sector could be "anywhere between 70,000-75,000 MW" in the 11th Plan (2007-12), Planning Commission member Kirit Parikh said today.

This would be more than double the likley addition during the 10th Plan (2002-07) of about 31,000 MW.