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CM Seeks More Gas for Power Projects

Hyderabad, July 16 (INN): Chief Minister N Kiran Kumar Reddy requested Union Defence Minister A.K.Antony, who also heads the Empowered Group of Ministers on Gas allocation, and Union Petroleum & Natural Gas Minister Veerappa Moily for priority allocation of Gas for the Gas-based Power Projects in the State at the EGoM meeting to be held on Wednesday.

The Chief Minister spoke to these Union Ministers this afternoon over phone. The Chief Minister emphasised the need to consider the case of Andhra Pradesh as special status. He said that Andhra Pradesh Gas based power plants are only projects which were constructed on the firm allocation of gas from KG Basin. For the eight gas based power projects and 1 Vijjeshwaram Joint Venture power project the Gas Linkage Committee has originally allocated 12.97 MMSCMD gas (EGoM allocated gas of 6.82 MMSCMD for long term PPA projects and 2.34 MMSCMD to Merchant plants totaling to 9.16 MMSCMD at the rate of 75 per cent PLF).

It may be recalled that the Chief Minister has been relentlessly pursuing the issue of gas allocation with the Union Government. He had earlier requested that while allocating domestic gas, power sector should be given priority over fertilizer sector. This would make about 7 MMSCMD Gas available to Power sector and this 7 MMSCMD gas may be allotted to Andhra Pradesh in view of Severe Power shortage in the State.

The Chief Minister had also requested that while allocating domestic gas (including APM [Administrative Price Mechanism], Per-NELP and NELP – current and future discoveries), AP gas-based power projects, need to be accorded the highest priority as they are only ones constructed on the firm allocation of supply of gas by Gas Linkage Committee during 1999-2000. He had also suggested that Gas based power projects in the state should be given priority over Ratnagiri Gas Power Pvt. Ltd., as RGPPL was originally planned with Naphtha as fuel whereas Plants in the state were planned with natural gas as fuel. The Chief Minister had also requested for allocation of Additional 11.7 MMSCMD of domestic gas from new sources (ONGC fields and GSPC (Gujarat State Petroleum Corporation) fields) to power sector.

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