The Hindu Business Line : AP to use naphtha in power plants during rabi season

Hyderabad, Nov. 21 With the price of naphtha coming down by about 50 per cent in the last few months, the gas-based generating stations have been asked to take up power generation to meet the increasing demand in the ensuing rabi crop season in the State.

Some of the projects like that of Lanco and GVK, who are using natural gas have been asked to run their plants on naphtha and divert the gas allocated to them to other projects.

This decision was taken after a review meeting here today in which the Chief Minister, Dr Y.S. Rajasekhara Reddy, directed AP Transco to ensure 7-hour power supply for the farm sector to save rabi crops.

According to a statement from the Chief Minister’s Office, with the demand-supply mismatch set to widen, AP Transco has been directed to purchase more power from the Central pool and generating stations, procure additional coal from overseas and also use naphtha in new gas-based generating stations.

Dr Reddy suggested a firm tie-up for naphtha supply till May next year. All projects with capability to use naphtha as fuel have been directed to use naphtha and the gas allocated to them be diverted to plants which run with natural gas.

The Chief Minister asked the Finance Department, AP Tansco, AP Genco and Singareni Collieries to work out contingency plan for funds so that power generation is not affected.

Singareni Collieries was directed to supply additional 2.5 MT of coal more than already agreed quantity to AP Genco. AP Genco and AP Transco were asked not to depend on the gas produced by Reliance in the KG Basin.

During October, the peak demand shot up to 9374 MW with energy requirement of 201.76 MU. However, this has come down to 158 mu/day.

As per estimates, the peak demand during rabi season is estimated to be about 11243 MW and energy requirement projected at 218 mu per day. The short fall is likely to be about 20-40 mu per day.

With this change, IPPs Lanco, GVK, Spectrum and Reliance would be operated with naphtha and new IPPs starved of gas such as GVK Extension and Vemagiri will use diverted gas from the former. Necessary consent from Central Government will be secured.

With elections on the cards, getting additional power from other States is likely to be tough, officials explained.

More Stories on : Power | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page