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GMR to shift power project to Kakinada

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Kamlesh Trivedi Ahmedabad
Last Updated : Feb 06 2013 | 5:34 AM IST
Barge-mounted power plant to use gas from KG basin.
 
GMR Infrastructure is planning to shift its barge-mounted 220 mw naphtha-based power project from Mangalore to Kakinada from 2008.
 
Once anchored at Kakinada, on the east coast of Andhra Pradesh, the plant would purchase natural gas from Reliance Industries Limited or from Gujarat State Petroleum Corporation (GSPC) as fuel for power generation.
 
BVN Rao, director, GMR Infrastructure, said to anchor the barge at Kakinada, the company has already acquired the land.
 
"The land required was only about 30 to 40 acres for the power project but we have acquired around 500 acres to encourage power intensive projects along side the power project," he said.
 
Once the existing seven-year power purchase agreement with Karnataka government is over by June 2008, the barge-mounted power project would be moved to Kakinada.
 
GMR would sell its power capacity to end consumers in and around Kakinada. "We may also reserve part of the power generating capacity for power trading," said Rao.
 
However, lot depends on the availability of gas from the Krishna Godavary basin. RIL and GSPC, both have discovered gas from the KG basin and have plans to begin commercial production in 2008.
 
GSPC plans to begin commercial production of natural gas from its KG basin block from first half of 2008. RIL and GSPC, both plan to sell their gas first to the local companies in Andhra Pradesh and in the neighbouring regions.
 
'' Our project would be almost like a well head project for the KG basin gas producing companies RIL and GSPC," said Rao.
 
Since the barge would be close to the land fall point of the under water gas pipeline of RIL and GSPC, GMR would also be in a position to bargain in gas price.
 
Though the price of KG basin gas is not known, GMR feels it will certainly be cheaper than liquefied natural gas available on the west coast.
 
"If KG basin gas is not available on time we may also consider going to some other place which could even be the western part of the state," however, Rao added.

 

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First Published: Jul 25 2006 | 12:00 AM IST

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