Financial Daily from THE HINDU group of publications Saturday, Oct 02, 2004 |
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Corporate
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Outlook DVC mulls setting up gas-based power stations Pratim Ranjan Bose
Kolkata. Oct. 1 WITH emerging prospects of the availability of natural gas and coal bed methane (CBM) by 2006-7, Damodar Valley Corporation is considering setting up gas-based power stations during the Eleventh-Plan period. Talking to Business Line, the Technical Director of DVC, Mr R.K. Singh, said that the corporation was planning a meeting with both GAIL (India) and ONGC to take stock of the situation preferably this month. "Given the assurance for requisite supply, we may opt for gas instead of coal for future power stations." He said DVC was always in touch with developments on the CBM front. "We had several meetings with the ONGC in the past. However, concrete decision could not be taken in the absence of any viable production plan for CBM. As they are now scheduled to start commercial production, we will pursue the discussion further," he added. DVC had previously proposed adding 6210 MW coal-based capacity during the Tenth Plan. This was in addition to their existing capacity of 2760 MW. As things stand today, the corporation has firmed up plans for a 1210 MW capacity expansion at its existing power stations in Mejia (710 MW) and Chandrapura (500 MW) during the Tenth-Plan period. The 1000 MW Maithon Right Bank project, proposed to be undertaken through a joint venture with Tata Power, has run into rough weather over the issue of management control. As the five greenfield coal-based thermal power projects proposed to be undertaken at Durgapur and Maithon in West Bengal and Bokaro, Ramgarh and Kodarma in Jharkhand with a combined capacity of 4000 MW was yet to be finalised, Mr Singh said that DVC would explore emerging opportunities before firming up finances. "There may be a change in our project proposals." The corporation has planned to acquire land for its greenfield project in Durgapur during the Eleventh Plan period. Instead of its previous plan to set up one 500 MW unit, the corporation is now thinking of setting up two 500 MW units. Incidentally, DVC already has a thermal power generation facility in Durgapur. "The new power station will be set up at a different location from the existing facility," Mr Singh said.
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