The Hindu : Andhra Pradesh / Hyderabad News : Genco to sign gas supply accord with Reliance

Online edition of India's National Newspaper
Wednesday, Jun 07, 2006

Andhra Pradesh

Andhra Pradesh - Hyderabad

Genco to sign gas supply accord with Reliance

M. Malleswara Rao

6,300-cr. project to be set up at Karimnagar

HYDERABAD: The AP Genco will shortly sign an agreement with Reliance Petrochemicals for supply of gas to its 2,100-MW project being taken up at Karimnagar at a cost of Rs. 6,300 crores.

With Singareni coal mines located only 60 km away at Ramagundam, this mega project could have been an ideal pit-head station but the Genco wants it gas-based as it would work out cheaper. This is because the supply pipeline of the Reliance Petrochemicals, being laid from the Krishna-Godavari basin to Hyderabad, will pass by the side of Karimnagar.

The accord will be for supply of 9 million cubic metres per day to the plant from mid-2008. AP Genco MD Ajay Jain told The Hindu here on Tuesday that tenders for erection of plant would be called only after signing the gas agreement. Some 440 acres of land has been identified near the town at Lower Manair Dam from where the project will get 1.3 tmcft of water. A study on environment impact is "in full swing". The project's detailed project report (DPR) is expected to be ready by June-end.

The Genco has drawn up plans to increase its installed capacity to 12,000 MW by 2012 from the present 6,651 MW in view of a heavy demand likely from several upcoming massive lift irrigation schemes like Devadula and Kalwakurthy whose requirement is put at 3,000 MW.

As part of this, steps have been taken to expedite the 1,600-MW project at Krishnapatnam, planned with an investment of Rs. 7,000 crores. The Nellore Collector is expected to issue a notification soon to acquire 1,245 acres for the project for which DPR, prepared by Lehmeyer of Germany, will be ready in a month. A public hearing will be held in August on environment impact. Krishnapatnam is going to be the pride of the nation as it would be the country's largest thermal power complex accounting for generation of 5,600 MW. Tthe two units of the Rayalaseema Thermal Power Station at Muddanur is poised for synchronisation in September and December.

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