GAIL to supply gas to Bawana power plant

New Delhi, Oct 9 (UNI) State-owned GAIL (India) Ltd today inked a gas sales agreement (GSA) with Pragati Power Corporation Ltd (PPCL), Bawana to supply two million standard cubic metres per day (MMSCMD) of R-LNG.

''Gas will be sourced from Petronet LNG Ltd and GAIL will be transporting it to PPCL for which a MoU has already been signed with BPCL and IOCL,'' company's Chairman and Managing Director Dr U D Choubey said.

To bring gas from Dadri to Bawana, pipeline will be laid at a cost of Rs 5,000 crore, he added.

''We will lay the pipeline synchronising with the power plant,'' Mr Choubey said.

The re-gassified LNG shall be supplied to PPCL and the price of delivered gas will be in line with Pooled Price Policy directive issued by the government.

The gas supply for a 1,500 MW combined cycle gas turbine power project to be set up by PPCL at Bawana will commence from October 2009 and the validity of this agreement will be till 2024.

The power plant is expected to be fully commissioned by October 2010 to supply power to Delhi before the Common Wealth Games.

The peak demand for electricity in Delhi is slated to grow from the current 4,100 MW to 5,630 MW in 2010 as per the estimation of Central Electricity Authority (CEA).

From the current generation of 1,300 MW in Delhi, the Bawana Power Plant will go a long way in addressing the power shortage in the national capital.

UNI