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Andhra Pradesh seeks natural gas for 2 Genco projects

According to reports, the Andhra Pradesh Chief Minister, N. Kiran Kumar Reddy, has yet again taken up with the Centre for allocation of gas for upcoming projects at Nedunur and Shankarpalli, both located in Telangana.

While existing plants are starved of gas and new ones in the limbo without any immediate possibility of gas allocation, the Chief Minister has written to the Prime Minister, Manmohan Singh, and the Union Petroleum Minister, S. Jaipal Reddy, requesting for allocation of 9.72 mmscmd, with 4.62 mmscmd on a priority basis for Shankarpalli project in Ranga Reddy district of the State.

The Chief Minister stated that AP Genco has taken up 2100 MW of combined cycle gas-based power plant at Nedunur in Karimnagar through the special purpose vehicle — AP Power Development Company. This is the first gas plant of AP Genco.

While the land acquisition has been completed, statutory clearances are in place. Based on the assurance of Reliance Industrial Ltd , the developmental activities were completed. However, the EPC contract could not materialise for want of firm allotment of gas, he wrote.

Likewise, the 1,000 MW combined cycle gas plant at Shankarpally in Ranga Reddy district is vital for Hyderabad, and also to meet Metro rail requirement, which has not been provided gas linkage. In spite of repeated requests, there has been no progress in terms of gas allocation for these projects, he said.

The Chief Minister said these two projects are very important for the Telangana region to serve the farm sector operations and industries.

Through the letters, the Chief Minister reiterated the importance of these two projects for the development of the State, and wanted the Centre to accord top priority while allocating gas.

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