The ministry of power has declined Tata Power's request for one million metric standard cubic metres a day (mmscmd) of gas from Reliance Industries' K-G basin for one of its power generating units at Trombay and has asked the latter to first install a gas-based turbine.
The unit, with a capacity to produce 150 Mw of power, has been shut since March 2009. Prior to its closure due to environmental reasons, the unit was running on liquid fuel.
The ministry has said that gas cannot be allocated since the unit, which operates on a gas-fired boiler-steam turbine, would have an efficiency of 35 per cent and this would mean inefficient use of gas. A combined cycle gas turbine would improve efficiency to 50 per cent, it said.
"If Tata Power intends to put up a new CCGT unit then their proposal has to be considered," a source quoted the ministry as having told the company in a letter.
The ministry said that if a new CCGT comes up, then it would consider allocating gas, along with proposals of other new power projects that are in the planning stage. Tata Power requires another 2.2 mmscmd of gas for its two other units at Trombay.
Reliance has already signed gas sales and purchase agreements with nine power sector players for supply of 11 mmscmd of natural gas from the KG-D6 block.
