India’s largest private sector power plant inaugurated in Surat

Dedicating India’s largest private sector 1150 MW Sugen power project to the nation, Gujarat Chief Minister Narendra Modi on Wednesday announced that by 2010, each tribal farmer would be given agricultural power connection in Gujarat eastern tribal belt from Umargam in south Gujarat to Ambaji in north.

Modi said that Gujarat would become the first state in the nation to announce and impliment Biomass energy policy. He demanded coal linkage from Nagpur for thermal power plants of the state.

Central Petroleum & Natural Gas minister Shri Murli Deora, Energy minister Sushil Kumar Shinde, Bharat Solanki, Gujarat minister of state for power Saurabh Patel, Torrent power’s Sudhir Mehta, Shardaben Mehta, Ex Chief Secretary Shri P.K.Lehri, District Collector etc. were present at this function.

Union Minister for Petroleum & Natural Gas, Shri Murli Deora has said that enhancing energy security of the country and making petroleum products available to common man at affordable prices is the highest priority of the Government. He said that currently oil marketing companies are supplying domestic LPG cylinders to nearly 11 crore customers covering almost half of the population of the country. Vision 2015 envisages the additional release of approximately 5.5 crore new LPG connections in next five years mainly in rural areas. This would increase coverage to about 75% of the total population of the country.

The Minister observed that Gas is the most benign and environmental friendly fossil fuel. It is the fuel of the 21st century whose share in primary energy basket is increasing in the domestic market given its inherent advantages of environment friendliness, efficiency and cost competitiveness. Besides, natural gas is cheaper compared to other liquid fuels.

Also observing that Gujarat today is a major gas hub and consumes almost 37% of the total gas sale in the country Shri Deora listed out some of the major initiatives taken by Government of India to expand gas market especially in the state of Gujarat. These are :

• Setting up of a 5 MMTPA LNG Regasification Terminal at Dahej by Petronet LNG Limited. Expansion of the capacity of the terminal to 10 MMTPA is currently underway and the total investment is to the tune of Rs. 4,000 crore

• Setting up of a 2.5 MMTPA LNG Regasification Terminal at Hazira promoted by Shell at a cost of about Rs. 2,000 crore

• Laying of major Gas Trunk Pipelines like Hazira – Vijaipur – Jagdishpur (HVJ) pipeline, Dahej – Vijaipur pipeline (DVPL) and Dahej – Uran pipeline (DUPL) by GAIL at a total cost of about Rs. 6,050 crore. Capacity expansion of DVPL is currently underway at a cost of about Rs. 4,000 crore.

• A 1 MMTPA gas based petrochemical plant is being set up at at Dahej by OPAL with ONGC and GAIL as major promoters. The total project cost is estimated at Rs. 12,500 crore

Union Power Minister, Shri Sushilkumar Shinde said that in order to bring prosperity to the people, the power sector has to not just keep pace with but exceed the rate of economic growth. This, he said, is possible only if the Central Government, the state governments and the private sector work together towards the same goal. He called upon all stakeholders to renew the pledge to work together to make the power sector the engine of country’s economic growth and development.

Congratulating the Torrent family, Shri Shinde said that the 1147.5MW gas based project signifies the direction the Indian power sector has to take in the near future to overcome the shortage of electricity that threatens to shackle our economic growth. He said that today we face a peaking shortage of electricity of almost 12 per cent and an energy shortage of 9 to 10 per cent. The existing power deficit and a rising demand coupled with our commitment to provide access to electricity to all has necessitated a large scale capacity addition programme. Therefore, capacity addition of 78,000 MW in the 11th Five Year Plan and approximately 1,00,000 MW in the 12th Five Year Plan is being targeted.

Listing out several distinct advantages of natural gas over coal, the Minister said that his ministry has been constantly working towards making gas available to power projects. He said that, 18 MMSCMD gas has been allocated for existing and stranded power projects and those projects to be commissioned in 2008-09. Out of this, 7.54 MMSCMD gas was allocated to power projects in Gujarat, totaling 4154 MW.

The Minister observed that gas has been made available to power projects on fall back basis following the improved supply of gas. Shri Shinde said that he has also asked the Petroleum & Natural Gas Ministry to allocate another 40 MMSCMD of gas for all existing projects to operate at 90 % PLF. Power Ministry, he said, is prepared to bring another 5000 to 7000 MW gas based capacity during the 11th Plan if we get a further allocation of 35 MMSCMD.

Speaking on the occasion, Shri Bharat Sinh Solanki complimented the project authorities for all possible steps for which the United Nations Framework Convention on Climate Change (UNFCCC) has approved the SUGEN project as a Clean Development Mechanism (CDM) Project thereby enabling it to be eligible for earning carbon credits.