RIL gas troubles hit Delhi's Bawana power plant

Notwithstanding an assurance by the Centre on supply of gas, the fate of the 1,500 mega watt capacity Bawana power plant in the city is still hanging in balance following refusal of Reliance Industries to supply fuel to the plant, built at a cost of Rs 4,500 crore.

Ending months of uncertainty, the Centre had earlier this month conveyed to Delhi government that it will arrange gas for generation of 750 mega watt of power out of the plant's total capacity of 1,500 Mw.

RIL's KG-D6 output 31% below estimate

But power generation at the plant remained uncertain, with Delhi government saying it will not be able to afford imported fuel even if the Centre arranges it.

The Centre had allocated 0.93 million cubic meters per day of gas (mmcmd) from Reliance's Andhra offshore KG-D6 fields for the Bawana plant for 2009-10 and 2010-11.

However, Delhi government could not sign the Gas Sales Purchase Agreement with Reliance Industries Ltd due to delay in the Bawana project and the gas was allocated to other entities by RIL.

Reliance cuts gas supply to non-core users

RIL sells KG-D6 gas to users like fertiliser units and power plants at government-fixed rate of $4.2 per million British Thermal Unit.

But in absence of KG-D6 gas, the only option left for Delhi Government to use imported LNG for Bawana which will cost three times the price of Reliance gas.

"We will not be able to afford imported gas for Bawana plant as imported gas would be very costly," said a senior official of Delhi government.