The Power Ministry has recommended allocation of natural gas from Reliance Industries' fields to four power projects including Anil Ambani-run Reliance Power's Samalkot expansion unit in Andhra Pradesh.
The ministry, at the last meeting of Empowered Group of Minister on July 27, sought 14.5 million standard cubic meters per day of gas from RIL's KG-D6 fields for the four projects totaling 4,136 MW.
The request was made on the grounds that these projects have most approvals and would be commissioned by March 31, 2012, sources in the know of the development said.
It recommended allocation of 8 mmscmd gas for the 2,400 MW expansion project planned by R-Power at Samalkot, saying the project had environmental clearance besides "land, water and all other infrastructure facilities." Also, it has executed EPC contract on July 21, 2010.
The ministry sought 4.48 mmscmd gas for the 1,200 MW project Torrent Power is setting up at Dahej SEZ in Gujarat, 0.4 mmscmd for 100 MW unit of Pandurang Energy Systems at West Godavari District in Andhra Pradesh and 1.62 mmscmd for 436 MW plant of RVK Energy at East Godavari District, also in Andhra Pradesh.
All the four projects, according to the power ministry, would be commissioned during the current XIth Five Year Plan period (2007 to 2012).
Sources said the EGoM did not make any allocation to any plant as RIL had informed that it cannot produce more than 60 mmscmd gas from KG-D6. All of the current output of 60 mmscmd from KG-D6 has already been allocated to urea manufacturing units, power plants, LPG units, city gas projects, steel plants and refineries.
More gas from KG-D6 would flow when RIL completes drilling additional wells in the eastern offshore field.
The EGoM decided that "subject to availability of gas, necessary allocation from KG-D6 fields will be made to the projects in pipeline as and when such projects are ready to commence production."
Sources said besides the four projects, GMR is also in queue for 3.88 mmscmd for its 2x284 MW Vemagiri project that it says has obtained all clearances including from Ministry of Environment and Forests and is at very advanced stage of completion.
The company also entered into Gas Transportation Agreement with GAIL for transportation of gas, which the project will need from April 2011.
Also, Lanco has sought 3.5 mmscmd for 742 MW stage-III expansion of its Kondapalli power project, that will be commissioned by June 2011. The project has requisite statutory approvals and clearances, including environmental clearance in place and also having adequate evacuation systems for the power to be generated out of it, they said.
Sources said the Power Ministry stated that Torrent had land and water for its Dahej project and non-EPC work, including area grading, and civil work was being executed in full swing.
Torrent had signed Turnkey EPC contract with Siemens AG of Germany and Siemens for engineering, procurement and commissioning (EPC) of 3 units of 400 MW each on July 2, 2010.
Pandurang Energy Systems Pvt Ltd's 2x50 MW project in Annadevarapeta village in West Godavari District had land and water and all other infrastructure facilities while RVK Energy's 436 MW unit at Jagurupadu village in East Godavari districted had placed purchase orders for the equipment with GE and Wartsila.