Press Releases

[New Delhi, May 30, 2005]

For 1000 MW Doraha Power Project of Rs. 3,500 crore
(Sl. No. ND/CC/05/47)

GAIL will take 10 percent equity in the proposed 1000 MW Doraha gas based Power Plant of Punjab State Electricity Board (PSEB), to be set up at Doraha, near Ludhiana in Punjab. GAIL (India) Limited and PSEB have recently signed the Heads of Agreement (HOA) for the supply of 4.5 MMSCMD of natural gas for the proposed mega power project, likely to be commissioned by the year 2008-09 at an estimated cost of Rs. 3,500 crore.

In order to meet the demands of the proposed power plant in Doraha and other allied industrial, agricultural, transport and domestic sectors along the line, GAIL will be required to extend to Ludhiana, their Dadri – Panipat gas pipeline, which is being taken up for implementation. Apart from the Doraha power plant, the existing and new fertilizer plants will provide the anchor load for gas and other industrial / agro sectors and the retail gas markets in the catchment area of the pipeline will provide the secondary load.

The Ministry of Petroleum and Natural Gas has cleared the proposal received from the Chief Minister of Punjab for this purpose, conveying GAIL’s participation upto 10 per cent in the proposed JV project with PSEB.

This will be the second power project in which GAIL will take equity participation. GAIL has a12 per cent equity in the 156 MW power plant at Hazira of Gujarat State Energy Generation Limited.