GVK seeks Ministry nod to use HSD for gas-based power project.

With gas supplies from the KG-Basin coming to a standstill, Gautami Power Ltd., a GVK group company has sought a permit from the Ministry of Environment and Forests (MoEF) to use high speed diesel (HSD) instead of natural gas at its plant in East Godavari district of Andhra Pradesh.

This comes after a committee under the MoEF opined that usage of HSD for power generation will not be as eco-friendly as natural gas and directed the company to obtain the views of the Ministries of Power, Petroleum and Natural Gas on the issue.

'The Committee deliberated on the proposal and noted that the quantity of HSD to be utilised for power generation is quite substantial. The usage of HSD in such quantities will not be as eco-friendly as natural gas. The Committee, therefore, desired that the PP should obtain the views/comments of the Ministry of Power and Ministry of Petroleum & Natural Gas on the use of HSD for the project before taking a decision,' the Expert Appraisal Committee (EAC) under the MoEf said in its recent meeting.

It was also noted that the Government is subsidising HSD for certain specific end-users only, such as for transportation, the EAC further said.

The gas-based power project has natural gas allocation of 1.96 MMSCMD by MoPNG from KG Basin for operating the plant at full capacity.

HBL