Mumbai, Sept. 21 (PTI): BSES Ltd is planning to revive its 495 MW combined cycle power plant in Saphale and is in talks with Oil and Natural Gas Corporation Ltd (ONGC) and Reliance Industries Ltd (RIL) for supply of natural gas to the project.
“We have already written to the Maharashtra government and MSEB for revival of the Saphale project, at least for its 330 MW phase for which gas supply is available from ONGC readily,” acting chairman and managing director S.S. Dua told reporters after the company’s annual general meeting here today.
He said BSES had signed a memorandum of understanding with ONGC for supply of gas two years ago and since the state-run firm has recently discovered gas in Mumbai High, it wants to tie-up the supply agreements.
“ONGC has agreed to supply gas to both Saphale and existing Dahanu station. RIL has also informed us that they will supply gas to us by end December 2003,” Dua said.
The Union ministry of petroleum and natural gas has allocated gas for the 330 MW first phase of the project through ONGC’s capped wells, which are located around 120 kms north from the project site.
“After allocation of gas, BSES will expand the Saphale unit to 500 MW for which an investment of around Rs 1,800-2,000 crore will be needed,” the acting CMD said.
Dua said the company was pursuing the Central Electricity Authority for granting the techno-economic clearance for the project.
On the three distribution companies in Orissa, Dua said BSES’ south and west distcoms were now doing well, while north entity would take some few months to improve operations.
“The distcoms are collecting around Rs 8-9 crore more than the cost of work supply hence they will now be able to establish themselves and then invest in setting up of infrastructure,” he said.
Earlier, while answering shareholders’ questions, the CMD had said that the data prepared by the Orissa goverment and its SEB proved to be misleading, thus the distcoms sufferred losses.