The Hindu : New Delhi News : Gas supply pact signed for power project

Online edition of India's National Newspaper
Wednesday, Oct 10, 2007
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New Delhi

New Delhi

Gas supply pact signed for power project

taff Reporter

Bawana power plant will get 6 million standard cubic metres of gas per day

Photo: Sandeep Saxena

Delhi Chief Minister Sheila Dikshit and Power Minister A.K.Walia at the gas sale pact ceremony in New Delhi on Tuesday.

NEW DELHI: In a major development for the power scenario in Delhi, agreements for supply of 6 million standard cubic metres per day of gas to the 1,500 MW Pragati-III Power Project in Bawana were signed on Tuesday.

Under the agreements signed between Pragati Power Corporation Limited and Bharat Petroleum Corporation Limited, Gas Authority of India Limited and Indian Oil Corporation Limited, each of the three oil companies committed themselves to supplying 2 MMSCMD of gas that would go on to fire the power station at optimum capacity.

The gas would be imported and the supply will be arranged by Petronet LNG Limited. The signing ceremony was attended among others by Chief Minister Sheila Dikshit, Power Minister A.K. Walia and Chief Secretary Ramesh Narayanswami. Ms. Dikshit said the pact would help Delhi meet its demand for power that has been growing at 9 per cent per annum.

Also, she said, the Bawana plant would help Delhi tide over the demand ahead of the Commonwealth Games in 2010. Under the agreement, the gas would be supplied through the existing pipeline that would be required to be upgraded. Additional pipelines would also be laid from Dadri to Bawana for which GAIL would incur an expenditure of around Rs.5,000 crore.

Also, the gas supply would start from October 2009 for a contract period of 15 years and the delivered price would be based on pooled price principle applicable at the time of delivery of gas in line with the policy decision of the Union Ministry of Petroleum and Natural Gas.

It was announced that all the spade work for the project has been completed, the necessary clearances, including that of environment, have been obtained and the tender for setting up the project on a turnkey basis has been floated through the international bidding process. The bids would be received up to October 31, 2007, and works of the project would begin within three months.

Dr. Walia expressed confidence that commissioning of the coal-based power plant at Jhajjar and the gas-based power plan at Bawana would go a long way in making Delhi self-sufficient in power.

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