Lack of Gas Supply Delays Startup of Sravanthi Energy Power Plant

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Researched by Industrial Info Resources India (Delhi, India)--Sravanthi Energy Private Limited's (SEPL) (Gurgaon, Haryana) natural gas-fired power project has come to a virtual stalemate due to a delay in the commencement of gas supply. The first two 75-megawatt (MW) gas turbine-generator units of the 225-MW project, which were scheduled to begin operations in June 2011, have been idled due to the delay in the completion of the associated 182-kilometer Karanpur-Moradabad-Kashipur-Rudrapur gas pipeline.

The $54 million pipeline project, being developed by state-owned GAIL (India) Limited (BSE:532155) (New Delhi), to supply gas to the upcoming power plants in Uttarakhand, was scheduled to begin gas supply from January 2011, but now the project is likely to take another month for completion.

Sravanthi Energy plans to develop 930 megawatts (MW) of gas-fired power projects by the end of 2014. The company has made substantial progress with the 225-MW Phase II expansion of its maiden power venture in Uttarakhand. These projects are slated to be fully operational by December 2011.

SEPL is a special-purpose vehicle that is being promoted by the Sravanthi Group for the development of merchant power plants in India. SEPL has entered into a long-term gas supply agreement with state-run gas suppliers GAIL and Oil & Natural Gas Corporation (BSE:500312) (ONGC) (New Delhi) to source the feedstock for its gas-fired power plants.

The power generated by the project will be evacuated through the transmission system of state-run Power Transmission Corporation of Uttaranchal Limited (Dehradun, Uttarakhand).

The company is also developing a 480-MW, gas-fired project in Andhra Pradesh.

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