The Hindu : New Delhi News : No gas to spare for Delhi: ONGC

Online edition of India's National Newspaper
Saturday, May 13, 2006

New Delhi

New Delhi

No gas to spare for Delhi: ONGC

Sujay Mehdudia

Had already tied up for supply with its customers, Minister informs Lok Sabha

NEW DELHI: Within just two days of Delhi Chief Minister Sheila Dikshit claiming that Oil and Natural Gas Corporation (ONGC) had agreed to supply gas to the 350 MW Pragati Power Project, Phase-II, ONGC has "expressed its inability" to supply gas from the Panna-Mukta Tapti venture. The reason being given for the same is that it had already tied up for supply with its customers and has no gas to spare for Delhi.

This would have an adverse impact for gas tie-up for the 1000 MW Bawana power project. The Delhi Government plans to complete the project by 2010-11.

Ms. Dikshit had met Union Petroleum and Natural Gas Minister Murli Deora on Tuesday and claimed that she had been assured that Delhi would be made an allocation of 1.7 million metric standard cubic metres per day (MMSCMD) gas for the second phase of the Pragati power project scheduled to become operational by December 2007. She had also sought additional gas allocation for the 1,000 MW Bawana power project proposed to be set up in the run-up to the 2010 Commonwealth Games.

However, even before the dust had settled down on the issue the ONGC came out with the statement that it was unable to supply gas for the Pragati power project, phase-II.

The ONGC has informed that as it has already tied up its share with its customers, it has no surplus gas for Pragati power plant, phase-II. Union Minister of State for Petroleum and Natural Gas Dinsha Patel disclosed this in Lok Sabha on Thursday during Question Hour.

Mr. Patel said the Ministry had suggested to the Delhi Government that the Pragati power project authorities approach ONGC's partners in the PMT joint venture, British Gas and Reliance industries, for gas tie-up. They may either approach these partners directly or authorise Gas Authority of India Limited (GAIL) to negotiate with them on commercial considerations, the Minister had stated.

A serious setback

ONGC's statement has given a serious setback to the efforts of the Delhi Government to get going with the power projects in the Capital to enhance its own internal generation. However, the power policy of the Delhi Government has been lacking in direction in the past also and there is confusion as to what is the motive behind the exercise. "The authorities had given no such assurance and it is unfortunate that instead of brushing up the facts, the Delhi Government jumped the gun and made unilateral announcement on the issue," a senior official remarked.

Interestingly, only a few weeks ago it was announced that a decision to shelve the 1,000 MW Bawana power project and 350 MW Pragati power project had been taken as no gas was available and the rates at which it was being given did not work out to be a feasible proposition.

However, under tremendous pressure to increase its internal generation, the Delhi Government once again decided to revive the two projects. In addition, it also announced its decision to set up a 2,000 MW coal-based project in Jharkhand.

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