Business Daily from THE HINDU group of publications
Tuesday, Jul 24, 2007
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Business Daily from THE HINDU group of publications Tuesday, Jul 24, 2007 ePaper |
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Corporate
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Outlook Industry & Economy - Power
Say no to corruption: Dr U.D. Choubey (left), Chairman and Managing Director, GAIL, exchanging documents with Admiral R.H. Tahiliani, Chairman, Transparency International India, after signing a MoU on ‘Integrity pact programme’, in New Delhi on Monday. —
Our Bureau New Delhi, July 23 Ratnagiri Gas and Power Pvt Ltd (RGPPL), the erstwhile Dabhol power plant, may generate electricity using gas as a feedstock by mid-August. GAIL (India) Ltd, an equal promoter in RGPPL, on July 10 transported gas to the plant through a new pipeline from Dahej in Gujarat. Despite the 577-km pipeline transporting the gas, the plant could not take gas supplies as RGPPL was not able to provide guarantees for fuel payment. The Dabhol power plant will receive gas at $5.84 per million British thermal units (mBtu). This translates to a generating cost of Rs 2.80 per unit. Speaking to newspersons at the sidelines of a MoU signing function between GAIL and Transparency International India (TII) for integrating pact with contractors, GAIL, Chairman and Managing Director, Dr U.D. Choubey, said, “agreements have been inked today and gas supplies to the power plant will begin in a day or so.” Gas sales pact
Petronet LNG Ltd (PLL) has signed a gas sales agreement with GAIL, Indian Oil Corporation and Bharat Petroleum Corporation for offtake of the short-term LNG it is importing from RasGas of Qatar. After re-gassification, the gas is transported through GAIL’s pipeline to the power project. Dr Choubey said GAIL was in talks with Sonatrach of Algeria for long-term contract of import of 2.5-5 million tonnes of LNG from 2010 once Dabhol plant’s LNG receipt facility is fully completed. While GAIL has the responsibility of looking after Dabhol’s gas supply and completion of the LNG terminal, NTPC has the task of running the power plant. He said the LNG terminal would need another Rs 1,200 crore to build a breakwater without which the terminal could operate only 20-30 per cent of the capacity. The breakwater is to be constructed by 2009-10. In case the Government decides to sell the LNG terminal after hiving it off from the power plant, GAIL would be interested in buying the assets and may also consider joining NTPC in putting a joint bid, he said. GAIL’s subsidy burden
GAIL (India) Ltd expects a net subsidy burden of Rs 250 crore for the quarter ended June. This was at the same level as what the company paid during the corresponding period last fiscal. “While gross subsidy burden for the June quarter is seen around Rs 400 crore, this will be partly offset by the rising rupee against the US dollar, leading to a net subsidy burden of Rs 250 crore,” said Director (Finance), GAIL (India), Mr R.K. Goel. He said that GAIL is also seeking a waiver of kerosene subsidy, as GAIL’s business does not entail kerosene.
Related Stories: More Stories on : Outlook | Power | GAIL (India) Ltd
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