GSEG begins work on 350-MW gas based power project

Ahmedabad: In order to fill the gap of power demand and supply in the State, the Gujarat State Energy Generation Ltd (GSEG) has decided to embark upon expansion plan for addition of 1,000 MW, in three stages of 350 MW each, at its existing site in Surat district, the Chief Minister, Mr Narendra Modi, said on Thursday.

While laying the foundation stone for a 350 MW combined cycle gas power plant at village Mora near Hazira, Mr Modi said, this thermal power plant, which may cost Rs 1,050 crore, will generate power using environmentfriendly and pollution-free natural gas with cutting-edge technology to produce more energy at competitive costs, with a provision to use liquid fuels in emergencies.

The company will also develop a green belt in the plant area to promote greenery as per the guidelines of the Union Ministry of Environment and Forests, Mr Saurabh Patel, Minister of State for Energy and Petrochemicals, said.

STEP FORWARD

Currently, the GSEG has one gas-based unit of 156.1 MW combined cycle, comprising two gas turbines of 52 MW each and one steam turbine of 52.1 MW at the Hazira facility. The expansion is a step towards forward business integration by the main promoter, Gujarat State Petroleum Corporation Ltd, from whose Hazira-based gas wells GSEG procures all its gas.

After implementation of this 350 MW plant, the total installed capacity of the company would go up to 506.1 MW.

For this expansion, GSEG had floated tenders in November 2006. Within 10 months, it evaluated the tenders and issued Letter of Intent to the successful bidder, Bharat Heavy Electricals Ltd.

The new unit will comprise one gas turbine, one Heat Recovery Steam Generator (HRSG) and one steam turbine. BHEL would complete the project in 27 months from the date of notice to proceed.

The expected cost of the project is to be financed from debt and equity, Mr D. J. Pandian, Director of GSEG, said.