An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee may next week decide on allocating natural gas from fields like Reliance Industries' KG-D6 to power projects that will be commissioned by March 2012.
"The EGoM was previously scheduled to meet on November 2 but it is now to meet on November 10," a top government official said.
The panel, which had last met on July 28, is likely to decide on allocating gas to power plants that have been certified by the Central Electricity Authority (CEA) to start in the 11th Five Year Plan period ending March 2012.
"A list of six plants has been forwarded by the Power Minister with a combined requirement of 15.59 million standard cubic meters per day of gas," he said.
EGoM will consider allocating 4.67 mmscmd to 1,500 MW Bawana project in national capital, 3.08 mmscmd to Lanco's 770 MW Kondapalli expansion project in Andhra Pradesh, 3.07 mmscmd for GMR's 768 MW Vemagiri expansion project in Andhra Pradesh, 2.62 mscmd to 702 MW Pipavav project in Gujarat, 1.31 mmscmd to 351 MW Hazira unit of Gujarat State Electricity Corp and 0.84 mmscmd for 225 MW Kashipur project in Uttarakhand.
Another nine plants, including Anil Ambani Group's 2,400 MW Samalkot expansion project in Andhra Pradesh, have been placed in a separate list for which Power Ministry cites CEA as saying that the plants too may be commissioned in 11th Plan "subject to contractual and erection schedule being adhered to by the suppliers and the developers."
"Real assessment can be made only after substantial work has been done on the ground," the Power Ministry in an October 29 note informed the oil ministry. "The above facts are for consideration and decision of EGoM."
Also Read
CEA recommended allocation of 9.6 mmscmd of gas to Reliance-Power's Samalkot expansion project. Besides, 1.428 mmscmd gas allocation was recommended for 382.5 MW Sugen plant of Torrent, 1.628 mmscmd to 407 MW Jegurupadu stage-II, 3.137 mmscmd to 784.48 MW Gautami stage-II, 1.49 mmscmd to Torrent’s 400 MW Dahej plant, 1.44 mmscmd to 360 MW RVK Energy’s plant in East Godavari district of Andhra Pradesh and 0.84 mmscmd each to Kashipur projects of Beta Infratech and Gama Infraprop.
The official said the allocations will first be made to the six plants like Bawana and Kondapalli projects which were suggested by Power Ministry in first place.
The official said RIL is expected to reach 80 mmscmd of output from its eastern offshore KG-D6 fields sometime in 2012 or 2013. It currently produces about 57-58 mmscmd as opposed to close to 64 mmscmd of gas being allocated by the goverment to urea manufacturing units, power plants, LPG units, city gas projects, steel plants and refineries.
Besides state-owned Oil and Natural Gas Corp (ONGC) is to produce around 9 mmscmd more gas in 2011-12. Another 8 mmscmd is expected to be available from GSPC's KG Basin fields in 2012-13.