“We are in talks with ONGC and Reliance for the supply of gas for our 500mw Saphale project. We have also plans to invest in an undersea pipeline to transport gas from ONGC’s offshore gas fields,” say BSES. “Though we have not yet worked out the quantity and price details, Reliance Industries’ gas will be made available by December 2003.”

ONGC is likely to sell gas to BSES from its C-22/24 gas fields off the western coast. This would require laying undersea pipelines of 113 kms from the fields up to the coast and another 17 kms to Saphale.

The company expects an investment of about Rs 1,800 crore to Rs 2,000 crore in its proposed Saphale project. “The money will be raised as and when required. We have a debt-to-equity ratio of 30:70, so it should not be a problem,” the officials add.

ONGC has already agreed to supply 1.6-million cubic metre gas per day to its 500mw Dahanu power plant.