Private power producers sought Government intervention for immediate allocation of gas to projects recommended by the Power Ministry, while seeking a solution to the coal pricing issue.
Eight top honchos of the sector, including Mr Anil D Ambani, Mr Cyrus Mistry, Mr G.M. Rao, and Mr Naveen Jindal, under the aegis of the Association of Power Producers (APP) met the high-level secretary panel headed by Prime Minister's Principal Secretary, Mr Pulok Chatterji, looking into their woes here on Wednesday.
For the gas-based projects, they said that it is crucial that required quantum of gas be allocated to the 11th Plan projects to avoid the capacity becoming stranded. Gas supply to the sector has been dismal with it receiving less than 75 per cent of the requirement at present. Currently, about 9,500 MW of gas- based projects are under implementation, out of which 4,000 MW is expected to be operational by the end of the 11th Plan period. The empowered group of ministers on gas allocation is expected to meet on February 24.
The bigwigs also suggested that preferential allocation of natural gas for the sector, as recommended by the Saumitra Chaudhuri Committee be considered. While seeking priority treatment for gas-based power projects in Andhra Pradesh they said that for all new gas finds in 12th Plan, first priority should be given to the power sector followed by fertiliser. The players also said that a clear directive is required from the Government that no further gas-based capacity should be considered for allocation until the existing 11th Plan gas demand is fulfilled from domestic gas ramp-ups.
Long-term supply pacts
Power producers also sought long-term gas supply agreements in-line with Government directive for coal. After the meeting Mr Ashok Khurana, DG, APP said, “The panel agreed with the proposal given by the delegation and assured that since the recommendations made by the power producers are genuine and practical, it would be addressed immediately."
For the coal-based projects, they suggested that an expert body by constituted to evolve principles and mechanism to revisit the affected contracts impacted due to various reasons.
The reasons include change in law of source countries, less supply by Coal India Ltd against the assurance in letter of allotments (LoAs) and delay or denial in environmental clearances to allocated captive coal blocks, duly holding the developers accountable for expects in their control but finding practical ways for treating uncontrollable aspects.
The power producers also met Planning Commission members. They also made suggestions for the Budget 2012-13.