DMIC states asked to mull options to 5 gas-fired plants

Non-availability of gas had rendered these power projects unviable.

June 09, 2016 11:13 pm | Updated October 18, 2016 02:22 pm IST - NEW DELHI:

The Centre has asked three states along the Delhi-Mumbai Industrial Corridor (DMIC) to consider using land allotted for five gas-based power plants to set up “industrial areas” or renewable energy projects following the non-availability of gas.

The gas-fired projects, each with capacity of 1,000-1,200 MW, were to come up in Madhya Pradesh, Maharashtra and Gujarat as part of the corridor.

According to an official note accessed by The Hindu , “the structuring and implementation of these projects is pending since long due to the lack of availability of domestic gas. Hence, the project(s) seem(s) to have become non-viable.”

The Centre and the DMIC Development Corporation (DMICDC) — the nodal agency for implementation of the DMIC — have therefore suggested that the three states and the government-owned NTPC (working on some of these projects) explore alternate uses for the land after obtaining the necessary approvals.

Power, Coal and New & Renewable Energy Minister Piyush Goyal had informed the Lok Sabha in May that gas-based generating projects in the country were facing a deficit in the availability of domestic gas and most of the gas-based power plants were operating at a very low Plant Load Factor.

The gas-based power projects in the DMIC were to come up at Indapur in Pune (Maharashtra), Ville Bhagad in Raigad (Maharashtra), Vaghel in Patan (Gujarat), Rajpur-Shahpur in Mehsana (Gujarat) and Chainpura Industrial Area in Guna District (Madhya Pradesh). A sixth project had also been proposed but that plan was scrapped due to non-availability of gas, official sources said.

Project reports Detailed project reports were prepared for the two projects in Maharashtra, the one in Madhya Pradesh and the Vaghel Project. Te proposals had also received No Objection Certificates (NOC) from the Airports Authority of India (AAI) for the height of the power plant chimney.

While the Centre had granted environmental clearances, the states had assured water allocation for them. Site investigations were carried out for the Rajpur-Shahpur Project and it also received NOC from AAI for chimney height.Besides, the Centre gave its nod for the terms of reference for environmental clearances. It was decided Environmental Impact Assessment studies would commence on confirmation regarding gas allocation for all projects.

Indapur project Maharashtra Industrial Development Corporation had allotted about 80 hectares for the Indapur Project and 64 hectares for the Ville Bhagad Project.

Industrial Infrastructure Development Corporation, Gwalior, had allotted about 90 hectares for the Chainpura Project. The Gujarat Government had allocated about 132 hectares for the Vaghel Project. Also, project specific Special Purpose Vehicles were set up.

Gas supply pact Talks on a draft gas supply pact had begun with GAIL. Also, ministries of power and petroleum and natural gas were considering proposals for domestic gas allocation for these projects. With the Japanese Government-owned Japan Bank for International Cooperation holding a 26 per cent stake in DMICDC, the topic of gas allocation for these projects had come up during India-Japan meetings, the sources said.

Petroleum & Natural Gas Ministry had then informed that power ministry will ensure gas allocation for power projects on the basis of the priority of projects.

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