'Capacity addition in power depends on gas prices'

The planned capacity addition of power generation in the 11th five-year Plan could go up to 65,000 mega watts if gas prices stabilise in the next two years, said Power Secretary RV Shahi said here today.

Under the 11th five-year Plan, gas-based power projects have been kept to minimum, at 6,000 MW, given the uncertainty over the price and the availability of gas.

"However, if prices stabilise over the next year or two and gas availability is assured, we will then consider adding a few more gas based plants and total capacity under the 11th plan may go up to 65000 MW," said Shahi.

The Plan currently envisages adding 62,000 MW power to meet the projected requirement of 1,20,000 MW by 2012. Of this, 38,000 MW will be coal-based with 8,000 MW being generated from imported or blended coal and lignite. About 15,000 MW might be generated from hydel sources while 3,000 MW will be from nuclear power plants and 6,000 MW gas based plants.

Shahi said the Plan would also focus on ensuring continued coal supply to the power plants "� by locating the plants in coastal regions and by building pit head plants. He said of the five "ultra mega" power plants planned, three are in the coastal areas of Gujarat, Maharashtra and Karnataka.

The other two are planned as pit-head plants.

He added that the power ministry was in talks with the coal ministry to de-reserve blocks reserved for Coal India and allot them to power plants. Of the seven blocks that were recently de-reserved, six had been allotted to NTPC, he said.

Regarding hydel power, he said several projects under 250 MW were under consideration.

On the tariff front, Shahi said the ultra mega projects would start selling power at Rs 2.50 per unit while the hydel projects are expected to sell power at Rs 1.50-1.70 a unit.

The power secretary said in addition to enhancing generating capacity, transmission and distribution capacities in the country would also be strengthened. The current transmission capacity of 17,000 MW of the inter-regional grid would be expended to 37,000 MW, he said.

Shahi added that the government was coming up with draft guidelines on transmission and was planning to invite competitive bidding for private transmission lines, as well as consider proposals for joint venture with the Power Grid Corporation of India on transmission.

He also said that the ministry has identified a mix of easy and difficult lines for the private participants. The state governments are also being asked to strengthen intra-regional transmission lines, Shahi said.