State-owned steel major Steel Authority of India (SAIL) has sought gas allocation of 5 million standard cubic metres per day (mscmd) for its proposed 1,050-MW independent power plant at Jagdishpur, near Amethi in Uttar Pradesh.
"SAIL has submitted an application to Central Electricity Authority for allocating 5 mscmd natural gas from domestic sources for the power plant project," Steel Minister Beni Prasad Verma told PTI.
To prioritise gas allocation for the project, the Minister has also written a letter to Power Minister Sushil Kumar Shinde, whose ministry is preparing a list of gas-based power plants to be commissioned during the next Five-Year Plan (2012-17).
"I have written to Shinde saheb. He will prioritise it and would pitch for gas allocation," Verma said.
Viewed as Steel Minister's pet project, the power plant falls in Congress General Secretary Rahul Gandhi's parliamentary constituency Amethi.
Since taking charge of the ministry, Verma has taken a keen interest in reviving erstwhile Malvika Steel, at whose site in Jagdishpur the power plant is proposed to be constructed. SAIL had bought the loss-making unit in 2009 and attempts are on to revive it.
The project is expected to entail an investment of around Rs 5,000 crore.
The Minister also said that this will be an independent power project by SAIL through SAIL Jagdishpur Power Plant and action has also been initiated to get environmental clearance.
SAIL had earlier proposed to set up a steel plant of 2 million tonne per annum capacity, along with a 1,050-MW power plant for the revival of erstwhile Malvika Steel at an estimated investment of Rs 10,000 crore.
However, it had to change the plans following a rejection of its request by the Petroleum Ministry for allocation of gas.