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Power Honchos Get Together to Seek Govt Help

  • They may be competing with each other in power business, but Ambanis, Tatas, Ruias, and GMR to name few have come together to seek urgent policy interventions to avoid idling of capacity. The honchos are meeting all the key ministers and officials together today.The delegation is going to meet the Prime Minister, Dr Manmohan Singh, late evening. The private power producers are seeking Government help to make their projects economically viable. Issues like fuel availability and pricing, delay in environment clearances, and health of distribution companies are prominent among them.Fuel availability has emerged as the biggest risk faced by thermal power projects in India. While coal production has not kept pace with capacity addition and developers have been forced to import coal at a time when international coal prices have soared.

  • Availability of domestic natural gas is becoming scarce because of continuous drop in gas output from Reliance Industries-operated D6 fields in the East Coast. Most of the States are rationing power to both domestic and industrial consumers.The domestic power supply situation has deteriorated significantly and nearly 51 per cent of the coal-based projects are operating with less than seven days’ stocks.Today, there is over 90 per cent of the total private sector capacity in India and over 80,000 megawatt of capacity is under development/implementation. The private sector companies are expected to add 22,000 MW by the end of Eleventh Plan (ending in March 2012). They will represent 40 per cent of the total addition in this planned period.In their meeting with the Petroleum and Natural Gas Minister, Mr S. Jaipal Reddy, the producers sought gas allocation for their yet to be commissioned gas-based power projects.

  • Speaking to reporters after the meeting with the private power sector heads, the Petroleum Minister said, that they explained various aspects of the problems, which they are facing.He said that his Ministry has already circulated the note to the members of the Empowered Group of Ministers and these aspects will be again brought to their notice. Decisions with this regard will be taken by the Empowered Group of Ministers.In fact, in a letter to the Petroleum Minister, written earlier, the Association of Power Producers (APP) has said about 8,200 MW of gas-based generation capacity can be commissioned in the next 18 months.Of this, about 4,000 MW of power projects are ready to commence generation well before March 31, and are awaiting gas allocation from the Empowered Group of Ministers. The total gas-based power plants' capacity in the country is about 16,600 MW.

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