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Gas pipeline projects delay to hit TATA Power plant
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Saturday, 10 Nov 2012

Business Standard reported that delay in commissioning of gas pipelines passing through Odisha seems to have poured cold water over TATA Power’s plan to set up a gas based power plant in the state.

TATA Power had proposed a 2,000 MW coal fired power project at Naraj near Cuttack. But, mounting protests from green activists owing to the deleterious impact of emissions from the power station on wildlife at the nearby Chandaka to Dampada sanctuary had forced the company to switch to gas based mode.

The company had thereafter submitted a revised application to the state government for a gas based plant, presumably banking on supplies from the Surat to Paradip natural gas pipeline proposed by GAIL India Ltd. The Surat to Paradip pipeline will cover a distance of 400 kilometer in Odisha. In addition to this pipeline, the 1,100 kilometer Kakinada to Howrah pipeline which is under construction is set to cover 434 kilometer in the state.

An energy department official said that “The gas pipelines are not likely to be commissioned before 2017. Against this backdrop, TATA Power may not be keen on gas based plant. Since the company has already proceeded significantly on land acquisition and ordered equipment, it is not in a position to wait for 5 years.”

TATA Power, however, said that it is still keen on the gas-based power plant.

A company official said that “All I can say is that we are going to stick to the revised application that we have submitted to the state government.”

The company’s coal based planr had hit a roadblock owing to its proximity to the Chandaka to Dampada wildlife sanctuary. The plant site was located within a distance of only 1.5 kilometer and wildlife clearance was mandatory for any project to be located within 10 kilometer radius of a national park or wildlife sanctuary.

Meanwhile, TATA Power’s 2,000 MW project was to come up on 1,000 acres of land. The company had claimed earlier that the land acquisition process was completed and it had paid INR 100 crore to Odisha Industrial Infrastructure Development Corporation towards acquisition cost.

Source - Business Standard


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