Only gas-based power projects with assured gas supply to qualify for benefits during 11th Plan: Sushilkumar Shinde

Only those Natural Gas (NG) and Liquefied Natural Gas (LNG) power projects have been considered for benefits during 11th Plan where the gas supply has been tied up or the projects are under construction.

Stating this on the Lok Sabha today, union power minister Sushilkumar Shinde said that
the proposed capacity addition programme of 78,577 MW during 11th Plan includes 4,266 MW gas / LNG-based projects as per the assessment of Central Electricity Authority (CEA).

The details of these projects are: 

* LOA placed for 374 MW

Shinde said that the public and private sector companies implementing gas-based projects normally undertake studies relating to feasibility, technical and financial viability and fuel supply security in respect of such projects before arriving at investment decisions.

Giving further details, the minister disclosed that the quantum of average gas supply during the period April-October, 2007 has been 35.82 million standard cubic meter per day (mmscmd).

The cost of generation for gas based power projects, at the current price of gas, works out to be higher than that of coal based power projects. However,  gas based projects have the following advantages vis-a-vis other fuels:-

• Projects can be set up near load centres with gas transported through pipe line.
• Transmission losses are minimum since projects are located near load centre.
• Fixed cost of generation is low.
• Reduced requirement of land, water, O&M personnel, reduced gestation period, reduced emission.