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Power firms line up for KG gas

Mumbai, April 7: Reliance Industries (RIL), which has just started pumping gas from two discoveries in the Krishna-Godavari (KG) basin off the Andhra coast, has shot off draft gas sale and purchase agreements to a host of power plants in the country. After fertiliser units, power plants are the next in line for the gas.

The empowered group of ministers is expected to announce the allocation of gas to power plants on Thursday. These plants — mainly concentrated in the deficit states of Maharashtra, Andhra Pradesh and Gujarat — will be given a total of 18 mmscmd of gas.

“Once we reach the 15-mmscmd mark that will be supplied to the designated fertiliser plants, we will start offering gas to power plants where pipeline linkages exist,” sources said.

Among the first recipients of gas are Ratnagiri Gas and Power Limited at Dabhol, Maharashtra, and the 445MW Konaseema and 464-MW Gautami power projects in Andhra Pradesh. The Andhra plants are closed now.

The gas will also help in converting Andhra Pradesh from a power deficit to a power surplus state, the sources said.

The other plants in AP likely to get gas include Vijjeswaram, Godavari, Jegurupadu, Samalkot and Vemagiri. In Maharashtra, besides Ratnagiri Gas, Uran with a generation capacity of 500 MW and Trombay (131 MW) are likely to be among the recipients. Dhuvaran, Utran, Vatwa, GIPCL, Essar and Pegunathan are the names shortlisted for Gujarat.

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