Standard Post with Image

Gas, Coal Shortage May Hit New Power Projects

  • Shortage of domestic natural gas and coal may slowdown setting up of new power projects during the 12th five-year plan beginning April 1, which envisages an addition of 75,785 mw of new power generation capacity costing Rs 13 lakh crore.India added 53,922 mw of new power generation capacity against the revised target of 62,000 mw during the 11th five-year plan period, ending March 31, power minister Sushilkumar Shinde said on Thursday.“The reason (for not achieving 11th plan target) is that there is a fuel shortage of both gas and coal. Otherwise, I could have certainly reached 62,000 mw.... In 12th plan, our intention is to do 78500 mw but, I am afraid of fuel shortage,” Shinde said.

  • Natural gas output from KG D6 in the east coast has dropped to 28.16 mmscmd in March 2012. It will further drop to 22.6 mmscmd by 2014, according to oil ministry. The acreage achieved peak output of 60 mmscmd in 2009 end. According to initial plan, RIL was expected to drill 80 mmscmd of gas by 2012.Similarly, coal output from government-run Coal India Limited has remained stagnant over the past many years. Prime minister’s office ordered Coal India to sign fuel supply agreements (FSAs) at 80 per cent plant load factor with power producers that have been commissioned till December last. These fuel supply agreements have to be completed by March end. At the same time, Coal India is suppose to sign FSAs with power plants that have to be completed by March 2015.

  • However, FSAs have not been signed till Thursday. “I understand there are some technical issues that Coal India is yet to solve. I am confident that FSAs with power companies will be signed very soon. I have been informed that the company is in final stages of signing FSAs,” Shinde said.

  • At the same time, India’s largest power producer NTPC chairman Arup Roy Choudhury said that 4,000 mw gas-based power plants planned during the 12th plan are unlikely to come up if the present fuel crisis continues. Power ministry has asked producers not to plan new gas-fired projects until supplies are tied up, he said, adding, “NTPC never goes ahead with projects where fuel supplies are not in place.”

Source