Uttarakhand, GAIL form JV for power plants

With the natural gas all set to reach Uttarakhand, the government-owned State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (Sidcul) is holding talks with GAIL to set up two 300-Mw gas-based plants at Kashipur and Haridwar areas.

"We have already held talks with senior officials of GAIL to set up gas-based power plants in Uttarakhand," said a top official of the Sidcul.

This is the first diversification move by Sidcul which had set up several key industrial estates like Pantnagar and Haridwar in the hill state.

GAIL is constructing two pipelines to bring them to Kashipur and Haridwar areas in the hill state from Uttar Pradesh in one year’s time. Since the industries are currently facing the heat of the power crisis in the hill state, the Sidcul is taking the new initiative to provide gas-based energy to these industries which includes some of India’s big names like Nestle, Tata Motors and Hero Honda.

GAIL began constructions of these pipelines last year with the construction of Karanpur-Moradabad-Kashipur-Rudrapur pipeline in the first phase with a cost of Rs 250 crore. The pipeline will be 182 km in length. Similarly, the other pipeline is being brought from Saharanpur in Uttar Pradesh to Haridwar district of the state.

Besides this, Sidcul has also evinced interest in the city-based gas distribution. With the people in the hill state facing shortage of LPG cylinders, the Sidcul is also gearing up to prepare a blueprint for the city-based gas distribution in cities like Dehradun.

Gas power projects yet to take off in Uttarakhand

Despite facing acute power shortage, the Uttarakhand government seems to have made no headway in its plans to tap alternative sources of energy, particularly in the gas sector, to meet the state’s growing power demand.

Three years ago, the government had tried to rope in Gas Authority of India Limited (GAIL) to jointly examine various opportunities for natural gas and undertake extension of the national gas grid to Uttarakhand.

State Infrastructure and Industrial Development Corporation of Uttarakhand Limited, a government enterprise, had signed a memorandum of understanding with GAIL to give a fillip to gas-based energy projects.

But since then, the government has not taken any concrete action in this regard. “Both the government and GAIL are not showing any interest,” said an official.

The government has also not conducted any exercise for assessment of the demand for natural gas and allied products in the state and promote usage of compressed natural gas, regasified liquefied natural gas and piped natural gas in the state.

GAIL’s existing HBJ trunk pipeline networks in the neighbouring state of Uttar Pradesh will have the nearest tapping point at Bareilly from where clean fuel like natural gas could be made available in Uttarakhand via two points, sources said.

The first route will lay a 95-km pipeline network to Rudrapur, Ramnagar and Haldwani from Bareilly. The other route will be an extension of gas pipeline from Dadri to Haridwar and then to Dehra Dun after laying a pipeline of 200 km length, they said.

According to a preliminary assessment, an initial demand of 2.13 million metric standard cubic metre per day (mmscmd) of natural gas is projected.

The demand for power, which is 23-25 million units, is likely to grow by 10 to 15 percent every year as industries continue to set up new units in Uttarakhand.

The state is facing a shortfall of at least 6 million units.

Source:http://www.business-standard.com/india/news/gas-power-projects-yet-to-take-off-in-uttarakhand/357058/