CM Seeks More Gas For Power Projects

Chief Minister N Kiran Kumar Reddy requested Union Defence minister A K Antony, who also heads the Empowered Group of Ministers (EGoM) on gas allocation, and Union Petroleum & Natural Gas minister Veerappa Moily, for priority allocation of gas for gas-based power projects in AP, at the EGoM meeting to be held on Wednesday.

The Chief Minister spoke to these union ministers this afternoon over phone. He reportedly emphasised the need to give Andhra Pradesh "special status" in this regard.

He said that Andhra Pradesh's gas-based power plants are the only projects which were constructed based on the allocation of gas from the KG basin. For 8 gas-based power projects and 1 Vijjeshwaram joint venture power project, the Gas Linkage Committee had originally allocated 12.97 MMSCMD of 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% 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, the power sector should be given priority over the fertilizer sector.

"This would make about 7 MMSCMD gas available to the power sector, and this 7 MMSCMD gas may be allotted to Andhra Pradesh in view of the severe power shortage in the state," is his contention.

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's 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 the Gas Linkage Committee during 1999-2000.

He had also suggested that AP's gas-based projects 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 CM had also requested that the power sector be allocated an additional 11.7 MMSCMD of domestic gas from new sources (ONGC fields and Gujarat State Petroleum Corporation fields). (INN)