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HYDERABAD: Though the monsoon is around the corner, the depleting natural gas supply from the Reliance Industries Limited-owned Krishna-Godavari Basin has spurred an unprecedented power crisis in the state. This has forced private power producers to seek the intervention of the Union petroleum ministry. As the drop in supply is threatening their future projects on which they have already spent crores of rupees.
According to sources, during the last few days, the supply from RIL’s KG Basin to the nine private power-producing companies in the state has dropped from 61.5 million metric square cubic metres per day (MMSCD) to 47.5 MMSCD. Together, the nine gas-based power firms are committed to supply 3,047 MW of power to the state’s power utilities every day. However, in view of the fall in the supply from the KG Basin, the companies are able to supply only 1,800 MW, thereby resulting in a shortage of almost 1,300 MW.
The power demand in the state at present is 11,000 MW per day. While the thermal power plants are generating to their full capacity, the hydel generation will pick up only after the monsoon rains. “If the supply from the KG Basin continues to dip, a bigger crisis is on our hands as the hydel generation can commence only in mid-July, provided the monsoon rains fill up the reservoirs,” said an official.
But the fall in the supply from the KG Basin has caused concerns for the gas-based private producers as well. As per the agreement between RIL and the nine private firms, the latter had promised a firm allocation (assured) of 61.5 MMSCD while the fallback allocation is 20 MMSCD. But with RIL falling short of its commitment by almost 15 MMSCD, the private producers are knocking on the walls of the Union petroleum ministry for help.
According to sources, Lanco Power and GMR Energy, two of the nine private producers, have already sought the intervention of the Union petroleum ministry. These power producers have invested over Rs 2,000 crore in their expansion projects, planning to add another 1,500 MW capacity. “If the supply from KG Basin continues to plummet, it means all our expansions plans will go kaput,” said sources in Lanco Power.
The shortage from the KG Basin is hitting the state financially too. As per the power purchase agreement between the state and the private producers, the state has to ensure that the private firms are provided with adequate natural gas supply in order to produce the power.
“Because of the shortage in the RIL supply, we are forced to buy the power from other sources which is costing the state about 3-4 times that what they get from RIL,” said AP Transco chairman and MD Ajay Jain. While gas from RIL KG Basin is available at $ 4.2 per million metric British thermal unit, the gas they are buying from other sources like GAIL and Gujarat is costing it more than $ 15 per unit. The state has already held a high-level meeting with the Union petroleum ministry recently in New Delhi in which representatives from GAIL, NTPC, RIL, RGTCL took part, and is awaiting a response.
