New Delhi, Oct 27 (IANS) Petronet LNG Ltd, a consortium of state-owned energy companies that operates the Dahej regassification terminal in Gujarat, has signed an agreement with Delhi's Pragati Power Corporation Ltd. for supply of gas for power generation.
The memorandum of understanding (MoU) signed Friday would help Delhi to raise its power generation capacity to meet increasing demand particularly during the during the Commonwealth Games 2010, Delhi Chief Minister Shieila Dikshit said during a signing ceremony attended by Petroleum Minister Murli Deora at the Delhi Secretariat.
'On the request of Delhi government, petroleum ministry has consented to give 10 million metric standard cubic meter per day (MMSCMD) gas to Delhi which can augment generation to 2,000MW. Of the total, the MoU has been signed with Petronet LNG Ltd. for supply of 7.3 MMSCMD gas for future power projects of Delhi,' an official said.
The Delhi government had plans to install gas-based power generation projects in Delhi but due to uncertainty regarding availability of gas, the proposals could not materialise.
'With the signing of this MoU, the pending projects - 350 MW Pragati-II Power Project and 1,000 Bawana Power Project - are scheduled to be made operational before the 2010 Commonwealth Games,' the official said.
The setting up of these gas-based plants will enable Delhi to enhance power generation from 700 MW to 2,000 MW and reduce dependence on the northern grid supplies.
The improvement in power position is expected to provide stability to the power system in the capital and make Delhi power surplus from 2010-11.