Karnataka Approves Four Gas Fed Power Stations to be Built Along GAIL Pipeline

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Karnataka state government has approved the construction of three gas-fired power plants. Other than the plant set to be built in Bidadi, the state will have four new power stations along the GAIL (India) Limited's (BSE:532155) (New Delhi) Dhabol-Bangalore gas pipeline.

The State Power Ministry will prepare detailed project reports for the three 700-MW plants to be at Athani, Mundargi and Harappanahalli in the districts of Belgaum, Gadag and Davangere, respectively. The projects will be executed on a public-private participation basis. A 2,000-MW plant at Bidadi, which is close to Bangalore, is under development.

Meanwhile, Karnataka has concluded initial negotiations with GAIL regarding the new ventures. Detailed project reports are likely to be completed by the end of this year.

The 30-inch diameter, 1,389-kilometer Dabhol-Bangalore pipeline is being executed in phases. The first phase will involve the construction of a 402-kilometer pipeline from Dhabhol to Gokarna/Gadag, with spurlines to Goa and Belgaum by 2012. Later, another 570-kilometer pipeline will be built between Gokarna and the Karnataka Power Corporation Limited's (KPCL) (Bangalore, Karnataka) plant at Bidadi, in addition to feeder and spur lines to Bangalore. This stretch of the pipeline will be ready by 2011-13, at the latest. Feeder/spur lines to the individual districts of Bijapur, Dharwad, Devangere, Harihar, Kolhapur, Ratnagiri, Sangali and Tumkur will be laid during the second phase of the venture, which is set for completion in 2012-14.

The power projects are likely to be fully operational over a two-year span, following the completion of the pipeline. The line is likely to supply an estimated 2.9 million tons of gas to the city of Bangalore.

Meanwhile, with the onset of summer, the state government has lifted the price cap for short-term power purchases during the months of April and May 2010. The earlier rate was 13 U.S. cents per kilowatt-hour for short-term buys. Up to 750 MW of power can now be procured during the period, even if at higher rates. Further, the electricity distribution companies have been directed to implement energy efficient processes and manage demand to tide over the imminent peak load period.

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