The ministry of environment and forests (MoEF) has allowed GVK Group?s Jegurupadu gas-based power plant in East Godavari, Andhra Pradesh, to use diesel after the company said gas supplies from the Reliance D-6 block have been reduced.
The expert appraisal committee under the ministry had earlier rejected the group?s proposal in July 2012 to use diesel at the plant and advised it to approach the ministry of petroleum for its views on the matter. The panel, whose nod is required for any change in fuel use at power plants, changed its decision in the light of the oil ministry?s move last month to abolish subsidy for bulk diesel purchasers.
GVK is operating a gas-based power project at Jequrupadu near the Krishna-Godavari basin in East Godavari district. The 228 MW CCPP phase 2, an expansion of phase 1 commenced operations in 2009 and has a power purchase agreement (PPA) with AP Transco. With CCPP phase 1 and phase 2, the Jegurupadu plant has a combined capacity of 445 MW. Further, as part of its development plans, GVK is working on an expansion project (phase 3) with a capacity of 800 MW.
?In view of the information provided… the Committee finally recommended that HSD (high speed diesel) may be permitted as top-up fuel only till 100% natural gas supply is available,? the EAC said last week. GVK told the panel that gas supply from Reliance Industries had been declining and the current supply was about 0.5 MMSCMD instead of the required 1.1 MMSCMD.
