GAIL signs Gas Sales Agreement with Pragati Power for gas supply to Bawana Power Plant

New Delhi , October 9, 2007: In a significant move to address the acute power crisis in the capital and to bridge its long-needed demand-supply mismatch, GAIL (India) Limited has inked a Gas Sales Agreement (GSA) with Pragati Power Corporation Limited (PPCL) to supply 2 MMSCMD of R-LNG. The GSA was signed here today by Shri B C Tripathi, Director (Marketing), GAIL and Shri Viney Kumar, Director (Technical), PPCL in presence of Smt. Sheila Dikshit, Hon’ble Chief Minister of Delhi. Dr. A.K. Walia Hon’ble Minister of Finance, Planning and Power, Shri Narayan Swami, Chief Secretary, Government of Delhi, Shri Rakesh Mehta, Principal Secretary (Power), Government of Delhi, Dr. U D Choubey, Chairman and Managing Director, GAIL, Shri Sarthak Behuria, Chairman, IOCL and senior officials of GAIL, IOCL, BPCL, Petronet LNG Limited, PPCL and Government of Delhi.

The gas supply for a 1500 MW Combined Cycle Gas Turbine Power Project to be set up by Pragati Power Corporation Ltd. (PPCL) at Bawana will commence from October 2009 and the validity of this agreement will be till the year 2024. The power plant is expected to be fully commissioned by October 2010 to supply power to Delhi before the Common Wealth Games.

Speaking on the occasion, Smt. Sheila Dikshit, Hon’ble Chief Minister of Delhi said that it is a great occasion for the people of Delhi that GAIL (India) Limited will be transporting 6 MMSCMD gas to Pragati Power Phase III. The project will be completed before the Commonwealth Games.

Speaking on the sidelines, Dr U. D.Choubey, CMD GAIL said, “Gas will be sourced from Petronet LNG Limited and GAIL will be transporting it to PPCL for which a MoU has already been signed with BPCL and IOCL. Further, to bring gas from Dadri to Bawana, pipeline with two compressors will be laid. A loop line will also be laid in the GREP pipeline system of GAIL. It will involve Rs. 5000 crore investment and this network will supply gas to other customers also. GAIL is confident to lay this pipeline, synchronising with the power plant” he added.

The re-gassified LNG shall be supplied to PPCL Bawana and the price of delivered gas will be in line with Pooled Price Policy directive issued by Ministry of Petroleum and Natural gas.

The peak demand for electricity in Delhi is slated to grow from the current 4100 MW to 5630 MW in 2010 as per the estimation of Central Electricity Authority (CEA). From the current generation of 1300 MW in Delhi, the Bawana Power Plant will go a long way in addressing the power shortage in the national capital.

Shri B. C. Tripathi, Director (Marketing), GAIL and Shri Viney Kumar, Director (Technical), Pragati Power Corporation Limited exchanging documents after signing of Gas Sales Agreement in presence of Smt. Sheila Dikshit, Hon’ble chief Minister of Delhi, Dr. A K Walia, Hon’ble Minister of Finance, Planning and Power, Shri Narayan Swami, Chief Secretary, Government of Delhi, Shri Rakesh Mehta, Principal Secretary (Power), Government of NCT of Delhi, Dr. U D Choubey, Chairman and Managing Director, GAIL in New Delhi on 9th October, 2007