State-owned steel major SAIL has sought gas allocation of 5 million standard cubic metres per day (MSCMD) for its proposed 1,050 MW independent power plant in Uttar Pradesh's Jagdishpur, near Amethi.
"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've written to Shinde Saheb. He will prioritise it and would pitch for gas allocation," Verma said.
Viewed as Steel Minister's pet project, it 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.
Refusing to comment on whether it is his dream project, the minister said that his ministry is providing assistance to SAIL in getting gas allocated from the Petroleum Ministry.
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 Ltd and action has also been initiated to get environmental clearance.
Steel Authority of India had earlier proposed to set up a steel plant of 2 million tonnes 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.
At the site, SAIL is also installing a TMT bar mill of 1.5 lakh tonnes capacity in the plant, which is expected to be commissioned in January next year.
Besides this, a Galvanised Sheet Corrugation unit with annual capacity of 13,000 tonnes and a Crash Barrier manufacturing unit of capacity 10,000 tonnes per annum are expected to be commissioned by January next year, Verma said.