Delhi govt gives go-ahead to gas-based power plant

New Delhi, Feb 14 (PTI) Delhi government today gave itsnod for setting up of a 750MW capacity gas-based power projectin Bamnauli area of the city at a cost of around Rs 1,600crore.

A meeting of the Delhi cabinet, presided by ChiefMinister Sheila Dikshit, awarded the Pragati II project tostate-owned Bharat Heavy Electricals.

The cabinet also sought allocation of around 3.5 MMSCMD(million standard cubic metres per day) of gas to the projectbut left it to the Centre to take a final decision on theissue of gas allocation.

Dikshit said the gas-based power plant will supplyuninterrupted power to Indira Gandhi International Airport,Dwarka and nearby localities and make Delhi a power surplusstate.

"Commissioning of Bamnauli project will help us inmeeting fast-growing power needs of the city," Dikshit said.

Officials said the plant is expected to be fullycommissioned within 28 months of signing the agreement withBHEL. A penalty clause is also being incorporated in the pactto overcome any possible delay in completing the project bythe BHEL.

Officials said power demand in the city is going toincrease on an average by 8 to 10 per cent per annum andkeeping this in view, the government decided to set up the newplant. The peak power demand had touched 4,700 mw in July lastyear, which was below 4,000 MW a couple of years ago.

The cabinet also accorded in-principle approval to theclosure of coal-based Raj Ghat power plant and decided torestructure Indraprastha Power Generation Co Ltd (IPGCL).

The Raj Ghat plant, which is currently generating about130 MW of power, was set up in 1989.

The government has decided to close the plant inaccordance with its earlier decision of switching over fromcoal-based power generation to gas-based power generation.

However, the cabinet decided shut down the plant tillcommissioning of the Bawana project. .